Policy expert Desmond Lachman challenges the theory that the European Union is on the brink of economic salvation. His brief paper skillfully rebuffs the five factors “euro-optimists” commonly present as evidence of a recovery. He exposes the cracks in their forecasts and warns that an improved economic outlook will be elusive in the short term. Although this learned work is short on details, getAbstract recommends it to academics, policy makers and financial services professionals looking for another view into the euro zone’s economic future.
In this summary, you will learn
- Why, despite rumors to the contrary, the European Union’s economy is not on the cusp of a recovery;
- Why the grounds “euro-optimists” provide for an imminent recovery are inherently weak;
- Why policy makers should ignore the views of the euro-optimists.
About the Author
Desmond Lachman is a resident fellow at the American Enterprise Institute. He is a former deputy director of the International Monetary Fund’s Policy Development and Review Department.