Ireland Edition. Paul Krugman:
They Have Made A Desert, Ireland Edition: And called it a successful example of austerity…. Like that other implausible candidate for role model, Latvia, Ireland has been hailed as a success story — and a challenge to Keynesians like me — when there was never anything that looked like real success and nothing that posed any sort of puzzle. (Even in a Keynesian world, internal devaluation will work in the long run if you can stick to it — but in the long run, well, you know the rest.)
The sad thing here is that textbook Keynesian macro has been a very good guide all through this crisis — but nobody will believe it.