Give them all €10,000!
The economists John Muellbauer and Willem Buiter have proposed that the European Central Bank fixes the euro-depression by handing out €500 to each citizen or resident of the eurozone. Wolfgang Munchau, in the Financial Times (12 January), argues that a handout of €10,000 per person would be more realistic. It won't happen, but these are all conservative, mainstream economists, trying to think outside the box. Hand out the cash, and people would spend more and be less debt-crippled. Demand would rise, quickly. New jobs and new economic output would be elicited. Price deflation would turn into...