Is austerity killing Europe’s recovery?

MADRID — After more than a year of aggressive budget cutting by European governments, an economic slowdown on the continent is confronting policymakers from Madrid to Frankfurt with an uncomfortable question: Have they been addressing the wrong problem?

The campaign to reduce government deficits has come in response to a European debt crisis that could endanger the global banking system. And the budget cutting has been coupled with a reluctance by the the European Central Bank to stimulate economic growth like the Federal Reserve has in the United States; the ECB has instead raised interest rates twice this year to contain inflation.

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Dan Balz 02 Sep, 2011

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Source: http://feeds.washingtonpost.com/click.phdo?i=fa8ae2a6d910282d207e62b649f68a57
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