Latvia Proves Virtue of Severe Austerity!

New-1

From the front page article in the NYTimes today about how a severe program of austerity has yielded ‘success’ in Latvia, and Paul Krugman’s analysis in his blog, from which the graph was taken:

Now its abrupt turn for the better has put a spotlight on a ticklish question for those who look to orthodox economics for a solution to Europe’s wider economic woes: Instead of obeying any universal laws of economic gravity, do different people respond differently to the same forces?

Latvian businessmen applaud the government’s approach but doubt it would work elsewhere.

Oh dear!  Would that we were all as stoic as the hardy Latvians! Look what we would get for our pains:

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: