
How Edmund Phelps Got It Wrong On Greek Austerity
In the debate on the Greek crisis, no cliché was too tawdry to be used and no claim too stupid or false to be made
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Achim Truger is Professor of Economics, particularly Macroeconomics and Economic Policy, at the Berlin School of Economics and Law and senior research fellow at the Macroeconomic Policy Institute (IMK) at Hans Böckler Foundation in Düsseldorf. He has served as an economic advisor to governments, parliaments, political parties, trade unions and NGOs.

In the debate on the Greek crisis, no cliché was too tawdry to be used and no claim too stupid or false to be made

As the Euro crisis hit, European policy makers reacted with headless austerity policies and a tightening of the Stability and Growth Pact (SGP). The failure