Europe's stronger economies must give way to expansionary fiscal and monetary policies if they...

|By:, SA News Editor

Europe's stronger economies must give way to expansionary fiscal and monetary policies if they really intend to fix the crisis, says Paul Krugman. Private sector demand has plunged in the debtor countries, and austerity progams are killing public-sector spending as well. Export-led growth is the only way out. But, as the creditor nations economies contract under the weight of their own fiscal austerity measures, just where are these countries supposed to export to?