Econ Comments & Analysis
Forbes | Austerity In Europe: It Will Work If It's Ever Tried
The proponents of Keynesian-style deficit spending argue against austerity by claiming that it has failed in Europe. They point to the U.K., Italy, Greece, and onward, shouting that European government spending cuts have led to slow or negative growth and sky-high unemployment rates. The only problem with these arguments is that all the purported facts are misstated.
Bloomberg | More Bankruptcies Won’t Solve Cities’ Crises
In debating the meaning of Detroit’s collapse, commentators on the right and the left have found evidence for the benefits of municipal bankruptcy as a way to put distressed cities back on track.
NBER | Off-Balance-Sheet Federal Liabilities
Much attention has been given to the recent growth of the U.S. federal debt. This paper examines the growth of federal liabilities that are not included in the officially reported numbers. These take the form of implicit or explicit government guarantees and commitments.
Blogs
Economist | Multiplier maths
There used to be a popular quip that the IMF’s acronym stood for “It’s Mostly Fiscal”, because, whatever the problem, the fund’s economists would advocate tighter fiscal policy. How times change. In recent months, the IMF has been arguing for a more nuanced approach to austerity.
