Fiscal Policy and Quantitative Easing

The monetary policy has been preferred to fiscal policy to fight the recession, at least for United States. While Quantitative Easing has been recurrently applied in many episodes, from QE1 to the more recent QE4, there has been less attention paid to the possible uses of fiscal policy.

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Can Austerity be Expansionary?

I discussed in a previous post about the failure of austerity measures in Portugal. Here, I would like to take a few steps back and look better at the theoretical foundations of austerity. Without being a theoretical presentation of austerity, this post rather discusses the empirical evidences regarding the effects of austerity measures.

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