Newswise — “It should be no surprise to anyone that Germany's export-driven economy would suffer when so many European economies are themselves entering another recession. Indeed, they have nobody but themselves to blame for it after preaching spending cuts and tax hikes on virtually a continent-wide basis.
“So far, the Germans have avoided any fiscal contractions of their own but that doesn't make them immune to negative shocks from abroad. The road ahead doesn't look much brighter with both the UK and Spain showing negative growth and rising unemployment.
“At some point, even the Germans may have to admit that when you impose austerity you get economic contraction. Unfortunately, that point hasn't been reached. Now that we are at the end of the semester any of my freshman economics students – at least those who passed the course – could tell you why.”
--Steven C. Kyle, an expert in macroeconomic policy and an associate professor of management at the Dyson School of Applied Economics and Management at Cornell University.
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