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That's not a problem, the problem is the current austerity drive.

Another problem is using the boom to pay down government debt rather than to invest in a reduction of the trade deficit. Because if your economy is booming under a trade deficit the economy is taking debt on as a whole, and if you don't take that debt on as a government the private sector is doing it while at the same time growing on imports. That is not a healthy situation as we have seen, and the market won't correct it by itself.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 11:03:28 AM EST
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