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Spain / Economics Nobel Laureates advise to address unemployment before reducing debt

El Economista writes that Economics Nobel laureates Eric Maskin, Finn Erling Kydland and Christopher Pissarides argue that Spain should abandon the focus on deficit reduction and concentrate instead on reducing unemployment. Maskin said the priority should be to put people back to work rather than obsessing over debt; Pissarides said that the necessary structural reforms would already cause an initial negative shock on the economy making spending cuts counterproductive; and Kydland criticised cuts in R&D expenditures.

Source: Capture d’écran 2013-06-09 à 08.53.41

via Eurointelligence – Economics Nobel Laureates advise Spain to address unemployment before reducing debt.

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