Fiscal Austerity x Stimulus (Frankel)

The procyclicalists: Fiscal austerity vs. stimulus by Jeffrey Frankel published by VOXEU. “Is austerity good or bad? This column argues that it is as foolish to argue this question as it would be to debate whether it is better to drive on the left or right. Procyclical fiscal policy, on the other hand, is another question. The world is seized by a debate between fiscal austerity and fiscal stimulus. Opponents of austerity worry about contractionary effects on the economy. Opponents of stimulus worry about indebtedness and moral hazard.”