Tuesday, 16 May 2017

austerity is not only bad for the macroeconomy but also for the microeconomy

The ever thoughtful Chris Dillow has a very interesting article on the perils of austerity.  What makes this really interesting is the argument he makes that it is counter productive even in microeconomic terms.

Perhaps I should add austerity is good when the economy is going well but very poor when it is not. Countries who adopted austerity as policy experienced a depression ( a 10% drop in output) following the GFC!

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