Sunday, January 29, 2012

italy vs uk krugman

In Italy, Berlusconi's cabinet never did or propose austerity policies. Also if it was an inect populist rigth wing government nobody can remember just one austerity action. Large unemployment benefit  and rise on taxation in order to prevent cuts in the public sector were in place in Italy during all the time of Berluscono cabinet.
The austerity measures came in late 2011 with Monti cabinet baked up by Napolitano, Italy leftist president.

So it pose a real problem to you seeing as austerity policies like UK perform better than keynesian policies in Italy.

Of course is the Euro problem ( as you explained so well) and an inept government the real problem behind GDP disaster in Italy.

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