The Eurozone: A Case Study of Keynesianism’s Downfall
Commentary
The economic figures in the eurozone indicate the risk of stagflation, and this has had a noticeable immediate impact on Germany and France. However, it is also affecting the other countries in the region.
So, why has the eurozone been trailing behind the United States and other developed economies in recent years? The extensive stimulus packages, such as the 2009 Growth and Job Plan, the Juncker Plan, the New Green Deal, and the Europe Next Generation, are proof that central planning only leads to lackluster growth, increased debt, and now, inflationary pressures.
Although the European Central Bank’s most recent data reveals some moderation in monetary aggregates, inflation levels remain high and are continuing to rise in the latest reading.
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