Abstract
This paper is in two sections. The first briefly outlines some relevant lessons from the Latin American debt crises for the current European financial crisis. The second part deals with the European crisis, discussing pan-European measures to promote growth as well as exploring options for reducing and/or postponing debt servicing in European countries with difficulties for market access, with a view to opening greater space for national growth-oriented strategies within them. It then examines the possibility of less fiscal consolidation in European countries with market access, and shows in some detail, using the example of the UK, how such a policy would lead to far higher output and employment.
I would like to thank Marcus Miller, Peter Holmes and Jim Rollo for insightful discussions while drafting the paper as well as Edward Griffith-Jones for excellent research assistance. I am very grateful to participants in the IEA conference in Buenos Aires for insightful suggestions, especially Joe Stiglitz, Hernan Seoane, Jose Antonio Ocampo, Roberto Frenkel and Daniel Heymann for valuable comments. Any mistakes are my own responsibility.
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Griffith-Jones, S. (2014). From Austerity to Growth in Europe: Some Lessons from Latin America. In: Stiglitz, J.E., Heymann, D. (eds) Life After Debt. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137411488_8
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DOI: https://doi.org/10.1057/9781137411488_8
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