Krugman - Irish, Greek Austerity Regimes: Report from the front

Ireland: 10-year bond rates

Meanwhile, Greek austerity is failing even to do much to reduce the deficit, because the economy is shrinking. The usually discreet Calculated Risk sums it up:

More austerity coming – the beatings will continue until morale improves!

Even Business Insider seems to be getting it. Contractionary policies, it turns out, are contractionary. And don’t tell anyone, but this means that Keynesian economics is right.
---today