11.27.10

And Spain?

Posted in Economics, General Musings, Politics and Policy at 7:12 pm

Assume you are a neutral observer, behind a sort of Rawlsian Veil of Ignorance, tasked with examining an unknown country’s economic situation and making policy recommendations.

The facts are: 20% unemployment rate, 0% GDP growth, inflation at just over 2%, and a budget deficit of 2.96% of GDP and down significantly from a year ago.

Would anyone in their right mind recommend further austerity, e.g., spending cuts and tax increases, given this set of facts?

RSS feed for comments on this post · TrackBack URL

Leave a Comment