09/28/2012 08:31 am ET Updated Nov 28, 2012

Paul Krugman: We Must End The 'Cruel Nonsense' Of Austerity

So much for complacency. Just a few days ago, the conventional wisdom was that Europe finally had things under control. The European Central Bank, by promising to buy the bonds of troubled governments if necessary, had soothed markets. All that debtor nations had to do, the story went, was agree to more and deeper austerity -- the condition for central bank loans -- and all would be well.

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