Europe Has Apparently Given Up On Recovery

Matt Yglesias makes the point today that although the eurozone crisis appears to be over for the moment, the European economy is in shambles:

Worst of all, as Ambrose Evans-Pierce writes the European Central Bank seems to have entirely washed its hands of the situation, deciding that as long as there’s no acute banking crisis they don’t need to care about anything else. This is, among other things, exactly the attitude from the Trichet-Weber years that let the acute banking crisis develop. Over the long-term, it’s all tied together. Banks and sovereigns can’t be solvent if citizens don’t have incomes, Germany can’t export if Spain can’t import.

It is remarkable how little we seem to have learned anything from the events of the past decade. On topic after topic, from war to climate change to the economy, it’s as if we’re frozen in amber. No matter what happens, we just keep on believing the same things. More here from Ryan Avent.