Without higher spending and inflation we won’t solve the Eurocrisis

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Martin Wolf is on form in the FT this morning, with his arguments on the Eurocrisis as pertinent as ever. as the email summary of his argment puts it:

A return to external and internal balance in crisis-hit coutnries cannot be achieved without higher spending and inflation in the core.

 

I agree. And note it is both higher spending and inflation.

This argument is critical, and right.