New York Times
December 29, 2011
Dean Baker is unhappy at seeing yet another article asserting as fact something that is actually just something fiscal hawks imagine: the claim that Europe’s problem economies were running up government debt before the crisis.
Dean, this is a zombie; you can’t kill it unless you shoot it in the head.
Maybe the problem is that when Dean and I try to point out that Spain and Ireland don’t look anything like Greece, that’s just too complicated. So here’s another attempt: let’s construct an “average” troubled European government. I take debt to GDP from the IMF debt database, and weight the five GIPSI countries by their GDP in 2007. Here’s what I get:
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