Austerity plus uncertainty equals more contraction

Slí Eile 18/08/2011

Slí Eile: Voxeu had an interesting contribution by Miguel Kiguel [Argentina and Greece: More similarities than differences in the initial conditions] here. Kiguel recounting the experience of Argentina over a decade ago writes: "The fiscal contraction failed to restore confidence. It made the recession worse, thereby reducing tax revenues. The …