"Portugal exports more because wages have fallen and the economy shrank," according to Mark Blyth, Professor of Political Economy at Brown University in the United States, who was in Lisbon today to launch his book ‘Austerity: The History of a Dangerous Idea’ and to attend an austerity conference.
The current business model for Portugal, based on exports, may ultimately not be a good solution for the country, said the Scottish author who believes that the banks, not the increase in public spending, were the true cause of the European crisis.