domenica 13 luglio 2014
Spending cuts to improve confidence? No, the arithmetic goes the wrong way, by J. Bradford DeLong
The Vox debate on austerity rages on. Here Brad DeLong draws on his recent research with Larry Summers to argue that unless long-term real borrowing costs in the Eurozone exceed 5%, the short-term contractionary effects of spending cuts are likely to erode rather than bolster the overall fiscal situation.