Austeridad

Why is austerity so controversial? His detractors argue that it can generate negative spirals that cause an even greater economic decline. Supporters argue that fiscal deficits must be aggressively addressed and eliminated at all costs. This master book, the work of three world experts in the field, shows that, in reality, there is not only one kind of austerity and that some are good and others are bad. Based on thousands of fiscal measures taken by sixteen advanced economies in the last forty years, Austeridad values ??the effectiveness of reducing tax increases and spending cuts in reducing debt. And it shows that the cost of the cuts is much less than that of the tax increase. Expansive austerity can cause spending cuts to drive increases in output. They are also much more effective than tax increases in reducing debt growth. The authors also show that, contrary to what is often believed, austerity does not mean the end of the political career of those who bet on it, and offer new perspectives on how it was adopted in various European countries after the last financial crisis. .