Success, European Style
By PAUL KRUGMAN
January 13, 2014
Since I’m in Ireland, I should give a belated plug to the very good piece by Fintan O’Toole debunking talk about Irish recovery.
It’s kind of amazing, really. Here’s what Ireland’s recovery — both what has happened so far, and what’s likely over the next two years — looks like, according to the European Commission itself:
It takes an almost heroic act of denial to look at this chart and see a success story, a vindication for austerity policies.
And for what it’s worth (which isn’t much), Dublin still looks like a depressed city, with a lot of vacant storefronts — although my impressions may be colored by what I know about the macro numbers. Also, hotel rooms are remarkably cheap — good for visitors, but a sign that business remains very slack.
It’s really quite awesome, then, how the slight uptick here and in a few other places is being greeted by the likes of Olli Rehn with victory dances.
More In Paul Krugman
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The Anti-Scientific Revolution in Macroeconomics
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