How’s that austerity workin’ for ya? Just as sequestration takes hold here in the US, Europe is looking to go the other way, releasing more Euros (and even Pounds) in order to get things going again. The new US “policy” of budget balancing, backed into without thinking, is now being formally abandoned by everyone else.
There is probably some kind of requirement that any blog on economics has to write about Europe every so often, even if nothing new is happening. But today there may well be something worth writing about as the Central Banks develop the whiff of panic that has been absent so far. As Japan becomes more urgent and the US shoots itself, Europe has some tough choices to make. What, or better yet can, they do?