The European countries which are supposed to be flailing and failing

The British economy grew at the fastest pace in four years in the second quarter and German business confidence surged to a three-year high this month, indicating Europe’s recovery may be stronger than forecast.

U.K. gross domestic product rose 1.1 percent in the three months through June, almost twice as fast as the 0.6 percent gain predicted by economists in a Bloomberg News survey, the Office for National Statistics said in London today. In Munich, the Ifo institute said its business climate index, based on a poll of 7,000 executives, jumped to 106.2 this month, confounding expectations of a decline.

The article is here.  Again, that's not the final word by any means (e.g., UK spending cuts haven't happened yet), but it's worth a note.  We need a macroeconomic framework — not just AD, AD, AD – where such reports are not absurd outliers.


Comments for this post are closed