Zanny Minton-Beddoes: U.S. and Europe at Risk of “Self-Induced Stagnation”
October 31 — Global markets let out a huge sigh of relief last week that resulted in a big buying spree after European leaders agreed on a framework to work through their sovereign debt crisis.
The problem, even if the plan is to work, which the markets are starting to doubt, is that the deal doesn't really help the economic fundamentals. In fact, austerity has taken hold (justifiably so) across the continent to ensure debt burdens don't get even more out of control. That kind of fiscal contraction can be good for budgets but bad for growth. Read more and watch the video.
