How Stimulus Policies Cause Deindustrialization

LStimulus policies, at least when they are not coordinated between countries, are responsible for deindustrialization. This is what two economists, Carl Grekou and Thomas Grjebine, defend in a study for the Center for Prospective Studies and International Information to be published on 2 May.

To show this, they retrace the different phases of economic policies that followed one another in Germany, Italy, Spain and France. In the 2000s, Germany, then considered the sick man of Europe, pursued a policy of squeezing its domestic demand through wage austerity. It then began to accumulate record trade surpluses. Meanwhile, France, Italy and Spain have revived their economies and have…

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