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18 Nobel Prize Economists | Merkel’s Austerity Policy is Wrong


18 Nobel Prize Economists | Merkel’s Austerity Policy is Wrong

With the views expressed by Mr. Montebourg, the French minister of Economy that resigned yesterday along with all the other members of the government, seem to agree the 18 Nobel laureates of economics that met a few days ago in the German city of Lindau. Even though, they may have disagreed on almost all major economic issues, yet all seemed to agree on one, the mismanagement of the debt crisis by Merkel. Indeed, critics of the Chancellor were not limited to the circle of Keynesian school of thought.

Conservatives and even liberal economists strongly expressed their disagreement with the policy of austerity imposed by the Chancellor in the Eurozone. "It seems that Merkel has not understood the seriousness of the situation," said Columbia Professor Edmund Phelps, Nobel winner in Economics in 2006. "The Chancellor follows an entirely false approach. The austerity measures imposed on the eurozone will lead to a deep recession, “ Eric Maskin said, another Nobel awarded economist, who received the same award in 2007.

The German newspaper Welt am Sonntag commented: “The elite of world economics addresses the Chancellors recommendations to resolve the euro crisis in unanimous rejection".