Austerity

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Contents

Austerity 2

Contents 6

Justifications 7

Typical effects 9

Theoretical considerations 10

Multiplier effects 11

Crowding in or out 13

Government budget balance as a sectoral component 13

Other views 17

Empirical considerations 18

Eurozone 18

United States 20

France 21

Latvia 22

Controversy 24

Austerity and economic growth 24

Debt threshold 26

Austerity sequence 28

Balancing stimulus and austerity 30

"Age of austerity" 31

Word of the year 32

Examples of austerity 32

See also 33

Austerity 33

Austerity 35

DEFINITION OF 'AUSTERITY' 35

BREAKING DOWN 'Austerity' 36

The austerity delusion 36

by?Paul Krugman 36

Chapter oneStimulus and its enemies 40

Chapter twoThe austerity moment 44

Chapter threeDecline and fall of the austerity cult 48

The Greek exception 48

Austerity and growth 2009-13 49

Chapter fourA distinctly British delusion 52

Austerity in the UK 53

Why Austerity Is a Dangerous Idea 58