Thursday, October 21, 2010

Expansionary fiscal austerity?

I often disagree in various respects with Dean Baker. For example, I'm more of a deficit hawk under non-recessionary circumstances, and more inclined to cut entitlements growth as a part of the long-term adjustments that are needed to avoid a major fiscal disaster.

But I very much like and am in sympathy with this piece, which does a good job of rebutting recent arguments that fiscal austerity in current circumstances could actually aid economic recovery.

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