Why Fiscal Austerity?

Third Dialogue


Are people right to criticise austerity or not? Some political leaders have adopted very critical positions.


Public spendingPublic Spending IMFInternational Monetary Fund Agathis National incomeIncome Public Debtpublic Debt 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Alesina, A., & Ardagna, S. (2010). Large change in fiscal policy: Taxes versus spending. In J. R. Brown (Ed.), Tax policy and the economy. Chicago: University of Chicago Press.Google Scholar
  2. Alesina, A., & Perotti, R. (1995). Fiscal expansions and fiscal adjustments in OECD countries. Economic Policy, 10(21), 205–248.CrossRefGoogle Scholar
  3. Arrow, K., Blinder, A., Diamond, P., Maskin, E., Sharpe, W., Solow, R., Schultze, C., & Tyson, L. (2011). Nobel Laureates and leading economists oppose constitutional balanced budget amendment. Accessed May 2012.
  4. Baker, D. (2010). The myth of expansionary fiscal austerity. CEPR Working Paper, October. Accessed Dec 2010.
  5. Batini, N., Callegari, G., & Melina, G. (2012). Successful austerity in the United States, Europe and Japan. International Monetary Fund. IMF Working Paper, no. 12/190. Accessed May 2015.
  6. Blanchard, O., & Leigh, D. (2013). Growth forecast errors and fiscal multipliers. International Monetary Fund, IMF Working Paper, no. 13/1, January. Accessed Mar 2013.
  7. Blanchard, O., & Leigh, D. (2013, May 3). Fiscal consolidation: At what speed? Vox, CEPR’s Policy Portal. Accessed May 2013.
  8. Blanchard, O. J., Romer, D., Spence, M., & Stiglitz, J. E. (2012). In the wake of the crisis. Cambridge: Cambridge University Press.Google Scholar
  9. Blyth, M. (2013). Austerity. The history of dangerous idea. Oxford: Oxford University Press. Repr. 2015.Google Scholar
  10. Boitani, A., & Perdichizzi, S. (2018). Public expenditure multipliers in recessions. Evidence from the Eurzone. Department pf Economics and Finance, Catholic University of Sacred Heart, Milan. Working paper, no. 68. Accessed June 2018.
  11. Brancaccio, E. et al. (2013, September 23). The economists’ warning. Financial Times. Accessed Oct 2013.
  12. Brecht, B. (1956). Leben des Galilei. English edition: Brecht, B. (2008). Life of Galileo (trans: Manheim, R., Willett, J.). London: Penguin Classics.Google Scholar
  13. Chang, H.-J. (2014, October 20). Why did Britain’s political class buy into the Tories’ economic fairytale? The Guardian. Accessed Oct 2014.
  14. Coenen, G., Straub, R., & Trabandt, M. (2012). Gauging the effects of fiscal stimulus packages in the euro Area. European Central Bank Working Paper Series, no. 1483, October. Accessed Dec 2012.
  15. Davies, G. (2012, October 21). High fiscal multipliers undermine austerity programmes. Financial Times. Accessed Nov 2012.
  16. De Grauwe, P. (2015, January 30). Secular stagnation in the Eurozone. Vox, CEPR’s Policy Portal. Accessed Feb 2015.
  17. Della Posta, P. (2017). Interest rate targets and speculative attacks on public debt. Macroeconomic Dynamics. Forthcoming.Google Scholar
  18. Eberhardt, M., & Presbitero, A. F. (2013, November 17). Public debt and economic growth: There is no ‘tipping point’. Vox, CEPR’s Policy Portal. Accessed Dec 2013.
  19. The Economist. (2010, October 2). Cutting edge. Does fiscal austerity boost short-term growth? A new IMF paper thinks not.Google Scholar
  20. The Economist. (2012, October 27a). Short-term austerity in the aftermath of a severe crisis may prove more painful than thought.Google Scholar
  21. The Economist. (2012, October 27b). Leaders.Google Scholar
  22. The Economist. (2013, April 20). The 90% question.Google Scholar
  23. The Economist. (2013, September 28). Stimulus v austerity. Sovereign doubts.Google Scholar
  24. The Economist. (2014, October 4). Concrete benefits, IMF and fiscal multiplier.Google Scholar
  25. The Economist. (2015, June 13). The Washington wishing-well. The unstoppable rise in lobbying by American business is bad for business itself.Google Scholar
  26. Galilei, G. (1632). Dialogo sopra i due massimi sistemi del mondo tolemaico, e copernicano; proponendo indeterminatamente le ragioni filosofiche, e naturali tanto per l’una, quanto per l’altra parte. Firenze: Gianbattista Landini, (1914). English edition: Galilei, G. (1914). Dialogues concerning two new sciences (trans: de Salvio, A., Crew, H.). New York: Macmillan.Google Scholar
  27. Giacché, V. (2008). La fabbrica del falso. Strategie della menzogna nella politica contemporanea. Rome: DeriveApprodi. New updated edition, Reggio Emilia: Imprimatur, 2016.Google Scholar
  28. Giacché, V. (2013). Anschluss. L’annessione. L’unificazione della Germania e il futuro dell’Europa. Reggio Emilia: Imprimatur. Repr. 2014. German edition: Giacché, V. (2014). Anschluss: Die deutsche Vereinigung und die Zukunft Europas. Erschienen: Laika Verlag. French edition: Giacché, V. (2015). Le second Anschluss: l’annexion de la RDA: L’unification de l’Allemagne et l’avenir de l’Europe. Paris: Les édition Delga.Google Scholar
  29. Giavazzi, F., & Pagano, M. (1990). Can severe fiscal contractions be expansionary? Tales of two small European countries. In O. J. Blanchard, S. Fischer (Eds.), NBER Macroeconomics Annual (Vol. 5). Boston, Mass: MIT Press.CrossRefGoogle Scholar
  30. Grossman, S. (2014, February 16). 1 in 4 Americans apparently unaware the earth orbits the sun. Time. Accessed Aug 2015.
  31. Guajardo J., Leigh D., & Pescatori, A. (2011). Expansionary austerity: New international evidence. International Monetary Fund. IMF Working Paper, 11/158, July. Accessed Nov 2016.
  32. Heilbron, J. L. (2010). Galileo. Oxford: Oxford University Press.Google Scholar
  33. Herndon, T., Ash, M., & Pollin, R. (2014). Does high public debt consistently stifle economic growth? A critique of Reinhart and Rogoff. Cambridge Journal of Economics, 38(), 257–279.CrossRefGoogle Scholar
  34. International Monetary Fund (IMF). (2010). Will it hurt? Macroeconomic effects of fiscal consolidation. World economic outlook: Recovery, risk and rebalancing (Chap. 3, pp. 93–124). Accessed Nov 2010.
  35. International Monetary Fund (IMF). (2012). The good, the bad, and the ugly: 100 years of dealing with public debt overhangs. World economic outlook: Coping with high debt and sluggish growth (Chap. 3, pp. 101–127). Accessed Nov 2012.
  36. Jayadev, A., & Konczal, M. (2010). The boom not the slump: The right time for austerity. Roosevelt Institute Working Paper. Accessed June 2015.
  37. Kangas, O., & Kalliomaa-Puha, L. (2017). Austerity measures in Finland. European Commission. ESPN Flash Report 2017/28, May. Accessed Dec 2017.
  38. Krugman, P. (1996). A country is not a company. Harvard Business Review. January-February.…/a-country-is-not-a-company. Accessed Dec 2015.
  39. Krugman, P. (2013, March 14). Running government like a business or family. Blog, The New York Times. Accessed Apr 2013.
  40. Krugman, P. (2013, May 26). Reinhart and Rogoff are not happy. Blog, The New York Times. Accessed June 2013.
  41. Krugman, P. (2015, July 3). Europe’s many economic disasters. Blog, The New York Times. Accessed Dec 2017.
  42. Krugman, P. (2015, July 7a). Milton Friedman, Irvin Fisher, and Greece. Blog, The New York Times. Accessed July 2015.
  43. Krugman, P. (2015, July 7b). Debt deflation in Greece. Blog, The New York Times. Accessed July 2015.
  44. Krugman, P. (2015, September 1). Multipliers: What we should have known. Blog, The New York Times. Accessed Jan 2015.
  45. Krugman, P. (2016, June 17). When virtue fails. Blog, The New York Times. Accessed Dec 2017.
  46. Krugman, P., & Blanchard, O. (2016). How to save the world economy? Social Europe. Video. City University of New York, 4 January. Accessed Jan 2016.
  47. Latouche, S. (2007). Petit traité de la décroissance sereine, Paris: Mille et une nuits. Department de la Librairie Arthème Fayard. English edition: Latouche, S. (2010). Farewell to growth (trans: Macey, D.). Cambridge: Polity Press. Repr. 2015.Google Scholar
  48. Levine, D. K. (2015). Keynesian illusion. March. Accessed Apr 2015.
  49. Marelli, E., & Signorelli, M. (2017). Europe and the euro. Integration, crisis and policies. Cham, Switzerland: Palgrave Macmillan.CrossRefGoogle Scholar
  50. Maris, B. (1999). Lettre ouverte aux gourous de l’économie qui nous prennent pour des imbéciles. Paris: Albin Michel.Google Scholar
  51. Mitchell, W., & Fazi, T. (2017). Reclaiming the state. London: Pluto Press.CrossRefGoogle Scholar
  52. Office for Budget Responsibility. (2012). Forecast evaluation report. London: The Stationary Office. October. Accessed May 2015.
  53. Ostry, J.D., Loungani, P., & Furceri, D. (2016). Neoliberalism: Oversold? Finance & Development, pp. 38–41. Accessed June 2016.
  54. Reich, R. B. (2007). Supercapitalism. The transformation of business, democracy, and everyday life. New York: Alfred A. Knopf. Repr. 2008.Google Scholar
  55. Reinhart, C., & Rogoff, K. S. (2010). Growth in a time of debt. American Economic Review, Paper and Proceedings, 100(2), 573–578.CrossRefGoogle Scholar
  56. Reinhart, C., & Rogoff, K. S. (2010, August 11). Debt and growth revised., Vox, CEPR’s Policy Portal. Accessed Sept 2010.
  57. Romer, C. D. (2011). What do we know about effects of fiscal policy? Separating evidence from ideology. Accessed Jan 2012.
  58. Screpanti, E. (2013). L’imperialismo globale e la grande crisi: L’incerto futuro del capitalismo. Rome: English edition: Screpanti, E. (2014). Global imperialism and the great crisis: The uncertain future of capitalism. New York: Monthly Review Press.Google Scholar
  59. Skidelsky, R., et al. (2010, February 18). First priority must be to restore robust growth. Letter to the Financial Times. Accessed Feb 2010.
  60. Soros, G. (2014). Fallibility, reflexivity, and the human uncertainty principle. Journal of Economic Methodology, 20(4). Accessed June 2014.CrossRefGoogle Scholar
  61. Stiglitz, J. E. (2014, May 6). Can the euro be saved? An analysis of the future of the currency union. Rome: LUISS University. Accessed Sept 2014.
  62. Summers, L. H. (2014). U.S. economic prospects: Secular stagnation, hysteresis, and the zero lower bound. Business Economics, 49(2), 65–73.CrossRefGoogle Scholar
  63. Tamborini, R. (2014). Transatlantic austerity 2010-… A comparative assessment. Accessed Oct 2014.
  64. Tamborini, R. (2015). Heterogeneous market beliefs, fundamentals and the sovereign debt crisis in the Eurozone. Economica, 82, 1153–1176.CrossRefGoogle Scholar
  65. Wren Lewis, S. J. (2017, June 5). Could austerity impact be persistent. Mainly Macro. Accessed June 2017.
  66. Zingales, L. (2012). Capitalism for the people. Recapturing the lost genius of American prosperity. New York: Basic Books.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  1. 1.Department of Political SciencesUniversity of PisaPisaItaly

Personalised recommendations