Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Classical economic liberalism assumes that bad policies will be punished immediately by bad outcomes. Over the past 25 years, bond-market vigilantes have argued that all-seeing, forward-looking financial markets will always anticipate the future consequences of populist policies and impose risk premia. In these cases, populist economics always produced cycles of inflation, currency depreciation and instability, because global financial markets and other outsiders were skeptical from the start.Critics outside Germany saw only a deeply immoral polity pursuing a project that was doomed to fail. They were right about the immorality, of course; but they were wrong about the imminence of the project's economic collapse.In 1939, the Cambridge University economist Claude Guillebaud published "The Economic Recovery of Germany," which argued that the German economy was quite robust and would not collapse from overstrain or overheating in the event of a military conflict. The record of populist economics in Europe is neither particularly bad nor particularly outstanding.
Italy’s writing on the wall:
A cautionary tale once again
Ghost of Brexit past: Taking lessons from Britain’s history books
Winter is coming to the United Kingdom
FOLLOW THIS ARTICLE