Austeridade Fiscal: quando funciona?

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At the moment the consensus among economists seems to be that governments need to approach any fiscal consolidation with caution since they risk disrupting economic growth or making a recession worse, and should take care to balance spending cuts with tax increases. This book argues this approach is a mistake.

The authors think that the evidence of various austerity programmes over the last four decades suggests that the negative impact of economic austerity on growth has been exaggerated. While tax hikes can indeed be bad for the economy, cuts in public spending can actually boost economic growth, by increasing confidence among investors that spending is under control. What’s more, austerity is far from the “political kiss of death” that many people believe it to be – voters are willing to back a government with the “courage” to make difficult sacrifices to get a country’s house in order.

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Fonte: aqui