Paul Krugman has a very interesting blog post on the relative economic performance of the US and the euro zone.
Krugman starts out with this graph.
Krugman then goes on to give a complete (Market) Monetarist explanation for this development:
Things really go off track only in 2011-2012, when the U.S. recovery continues but Europe slides into a second recession…
…What was happening in 2011-2012? Europe was doing a lot of austerity. But so, actually, was the U.S., between the expiration of stimulus and cutbacks at the state and local level. The big difference was monetary: the ECB’s utterly wrong-headed interest rate hikes in 2011, and its refusal to do its job as lender of last resort as the debt crisis turned into a liquidity panic, even as the Fed was pursuing aggressive easing.
This is of course what Market Monetarists have been saying forever – we even have a…
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Utopia, you are standing in it! 
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