[PEN-L:30649] Re: EU Schlerorsis

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Paul is probably correct in his analysis, but a bit intemperate in his
presentation.

On Mon, Sep 23, 2002 at 05:28:15PM -0500, phillp2@xxxxxxxxxxxxxxx wrote:
> 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
>

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx