[PEN-L:30646] EU Schlerorsis

[phillp2@xxxxxxxxxxxxxxx]

Several times in recent days Ian and other have posted articles
about the abject failure of the EU to deal with its economic
problems (and also similar articles about Japan).  Many of the
posted articles end up referring to the failure of Europe -- and
particularly Germany -- to deal with 'labour market inflexibility.'  By
posting these articles, without comment, gives the impression that
'labour market inflexibility' is the cause of the Euro disease.  This is
CRAP and mearly repeats the OECD neoliberal ideology that is
being peddled by the OECD, IMF, etc -- the same crap that is
being peddled by the IMF, WB etc  -- AND HAS BEEN
DENOUNCED BY STIGLITZ  in his keynote address to the ILO last
year.  It has also been demonstrated in econometric analysis by
Tom Palley in his study posted on the Levy Institute web site.

So why do we keep posting this crap?  There is no labour market
rigidity in Europe that causes unemployment.  Palley
demonstrates that  empirically.  Stiglitz shows that theoretically.
Lets cut that crap and put the blame where it really belongs -- on
the monetarist stupidities that dominate the ECB and the EMU.

Paul Phillips,
Economics,
University of Manitoba