Euro exit is feasible

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Lord Wolfson has asked how the Monetary Union could be dissolved – offering £250,000 for the best idea. On January 1st, Frankfurter Allgemeine’s Sunday paper made a proposal. Starting today, the jury is evaluating the proposals, so we are publishing our commentary in English.

Should governments cut their spending? Alberto Alesina’s Answer

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Can austerity programs make economies grow? A fierce debate is going on, starting with a study by Alberto Alesina. Now, he replies to his critics. To me, Alesina sounds softer. He attacks Paul Krugman, but he admits that spending cuts might reduce growth in the short run if they are badly executed – while still stressing that they were the only way to get government debt down.