lunedì 28 luglio 2014
venerdì 18 luglio 2014
domenica 13 luglio 2014
Is austerity self-defeating? Is it keeping Europeans underemployed for years and destroying the very growth needed to pay off the debt? Or is it steering nations clear of Greek-like tragedies? So starts a new debate on Vox on austerity, introduced in this column.
Two examples: Italy and Britain
A new Vox debate
Issues in front-loading austerity measures
New thinking: Self-defeating tightening in a liquidity trap
Credibility, sovereign risk, and macroeconomic instability
Thorny issues for highly indebted countries
Debt finance of public consumption has clearly gone too far in several countries, reaching the borderline of sustainability. Have austerity measures now gone too far as well? This column argues it seems too early to sound the alarm. First, the global economy is likely to grow by 3.3 % this year, and second, reversing the fiscal stance or exiting the euro are worse options than austerity.