Dear Martin - Good support for the Keynesian interpretation from Skidelsky's reply to Ferguson, just published below
https://www.project-syndicate.org/commentary/britain-austerity-cameron-keynes-by-robert-skidelsky-2015-05
Dear Moazam - Yes, very good point on very low EU investment. It was actually quite low already before the crisis, and then fell drastically. Creates problem for demand (even tho also caused by lack of demand), but also of future potential output (supply).
German current account surplus is 8% of GDP, and Dutch one 10%! This is I understand against EU rules
About UK, I think the fiscal consolidation was less than had been announced, one reason why UK econ grew more than was projected by many; now, post election, there will be far more Fiscal consolidation, which may slow down growth
Best regards,
Professor Stephany Griffith-Jones
Financial Markets Director
Initiative for Policy Dialogue
Columbia University
E-mail: SGJ2108@Columbia.edu
Web sites: www.stephanygj.net, www.policydialogue.org
Twitter: @stephanygj https://twitter.com/stephanygj
https://www.project-syndicate.org/commentary/britain-austerity-cameron-keynes-by-robert-skidelsky-2015-05
Dear Moazam - Yes, very good point on very low EU investment. It was actually quite low already before the crisis, and then fell drastically. Creates problem for demand (even tho also caused by lack of demand), but also of future potential output (supply).
German current account surplus is 8% of GDP, and Dutch one 10%! This is I understand against EU rules
About UK, I think the fiscal consolidation was less than had been announced, one reason why UK econ grew more than was projected by many; now, post election, there will be far more Fiscal consolidation, which may slow down growth
Best regards,
Professor Stephany Griffith-Jones
Financial Markets Director
Initiative for Policy Dialogue
Columbia University
E-mail: SGJ2108@Columbia.edu
Web sites: www.stephanygj.net, www.policydialogue.org
Twitter: @stephanygj https://twitter.com/stephanygj
