IMF chief economist Oliver Blanchard has admitted that they blew the forecasts for Greece and other Eurozone nations, namely underestimating the fiscal multipliers. In other words, he is admitting that they overestimated the effectiveness of austerity in these countries.
Yet another stab in the idea that extreme austerity is good for countries even with weak economies. Americans looking for big spending cuts right now should take heed.
working paper here: http://www.imf.org/external/pubs/ft/wp/2013/wp1301.pdf
Yet another stab in the idea that extreme austerity is good for countries even with weak economies. Americans looking for big spending cuts right now should take heed.
working paper here: http://www.imf.org/external/pubs/ft/wp/2013/wp1301.pdf