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View Diary: Krugman: Dwindling Deficit Disorder (135 comments)

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  •  I suspect one of the important caveats about (2+ / 0-)
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    Joieau, elwior

    the austerity measures has much to do with inflation.  In many of the "developing" areas where the medicine is recommended, the runaway inflation causes squeamishness with regards to the stimulus firehose.  

    In Europe and the US, it's a different matter entirely ... inflation if anything needs to go up.  At least the US has the Fed trying to throw money at the problem (commendably despite the flack they get).  The Eurozone periphery is basically at the mercy of waiting for Germany and Brussels to get is head out of its collective you know where.

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