There Is Good And Bad Austerity, And Italy Chose Bad


By Alberto Alesina & Veronique de Rugy – There is “austerity” and there is austerity. “Austerity” implemented through tax hikes is harmful, but austerity based on appropriate spending cuts is the best way to reduce a country’s public debt burden. Implementing pro-growth reforms as part of the fiscal adjustment process can minimize any economic cost that budget cuts may have. This is especially important in the case of highly regulated economies where the government spends about half of its GDP, as is the case with Italy. more> http://tinyurl.com/d6p3amo

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One response to “There Is Good And Bad Austerity, And Italy Chose Bad

  1. Pingback: Veronique de Rugy On Sequestration And Government Spending | YouViewed/Editorial

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