Wyplosz, Ch., (2014), “What you ought to know about the ECB and Unemployment”, Social Europe Journal, 18 Φεβρουαρίου.
Τhe unemployment rate in the Euro area has increased by more than 50% since 2007, starting from an already unacceptably high level. The financial crisis that hit the world in 2007-8 is of historical proportions and explains some of this increase, of course. Figure 1 shows that the decline has been much worse in the Eurozone than in other developed countries that suffered from the financial shock. It is not surprising, therefore, that citizens are asking who is responsible for this unmitigated disaster? The disaster can be measured in the number of job losses; any amount will conceal the distress experienced by individuals and families which will inevitably have deep and long-lasting political consequences. Moreover, the impact of the financial crisis can be captured by lost revenues which will most likely never be recovered. Essentially we are witnessing a massive theft that dwarfs the biggest criminal operations.
The answer involves two separate questions. First, why did the crisis happen? Second, why were its effects so deep and long lasting? The list of potential culprits includes economists, governments and central bankers. My answer to both questions is that governments have failed their people, nowhere as badly as in the Eurozone.
Σχετικές Αναρτήσεις
- Wren-Lewis, S., (2014), “How the ECB could be Radical by being Old Fashioned”, Social Europe Journal, 20 Ιανουάριος.
- Wolf, G., (2013), “Governments must follow the ECB’s rate cut with policy action”, Bruegel, 13 Νοέμβριος.
- Wolf, M., (2013), “Why Draghi was right to cut rates”, The Financial Times, 12 Νοέμβριος.