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Paul Krugman: The Austerity Debacle

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Four years after the Great Recession began, Britain is nowhere close to regaining its lost ground. Italy is also doing worse than it did in the 1930s -- and with Spain clearly headed for a double-dip recession, that makes three of Europe's big five economies members of the worse-than club. Yes, there are some caveats and complications. But this nonetheless represents a stunning failure of policy.

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