“Stunningly destructive” and “dismal failure” is how Nobel laureates describe growth in the European Union after destructive austerity policies and the euro crisis.
Economists are casting doubt on the effectiveness of monetary policy in the 18-member eurozone, which is yet to fully shake off recession and produce sustained growth.
Data from earlier this month shows that economies have broken down, and growth has come to a standstill. The three largest economies- Germany, France, and Italy- all failed to grow.
Nobel laureate and Princeton University economist Christopher Sims warns that the euro countries hit worst by the crisis may be looking for an exit from the failed currency experiment.
“If I were advising Greece, Portugal, and Spain, I would tell them to prepare contingency plans to leave the euro,” the 2011 Nobel Prize winner said.
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