Euro’s survival needs shift in strategy

Rather than the austerity prescription Germany is promoting, the euro needs policies to promote growth and ease deficit targets to avoid sustained recession, writes Laura Tyson

FISCAL profligacy did not cause the sovereign-debt crisis engulfing Europe, and fiscal austerity will not solve it.

On the contrary, such austerity has aggravated the crisis and threatensto bring down the euro and throw the global economy into another tailspin.