German austerity could wreck U.S. recovery, Nobel economist says

06/22/2010 | Spiegel Online (Germany) · Irish Times (Dublin), The · Google

Severe spending cuts in Germany could further weaken a fragile economic recovery in the U.S., said Nobel economist Paul Krugman. He told business newspaper Handelsblatt that Germany is focusing on cutting its deficit when it should be confronting the dangers of economic stagnation. "Germany's consolidation policies don't just negatively affect the domestic economy; it also slows growth in other countries," Krugman said.

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Spiegel Online (Germany) · Irish Times (Dublin), The · Google

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