Via the Marvellous Mark Thoma Brad Setser writes an article where he is highly critical of fiscal policy in Europe around 2012.
He actually uses material from Banque De France. Let us hope officials in Europe have done some reflection and learnt the lessons of poof fiscal policy!
This is very difficult for fans of classical economics. They clearly adopted contractionary fiscal policies whilst still having deficits. They always think deficits equals stimulus! Our mate Katesy and the rest of the economic geniuses at Catallaxy all thought Europe adopted expansionary fiscal policies when they were clearly contractionary!
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