Paul Krugman worries anti-Keynes German finance minister Peer Steinbrueck is standing in the way of an effective European response to the economic meltdown. Peer Steinbrueck was recently interviewed by Newsweek (BBC).
According to Steinbrueck, the UK government is spending too much, raising its debt too high to in an effort to avert a depression. Given that Germany's bank-bailout now totals $650 billion, it's hard to understand Steinbrueck's priorities. Unless governments stimulate spending and investment, where does Steinbrueck expect any kick-start to come from? All those public-spirited private bankers?