Comments for Austerity, the Path to Prosperity? at http://www.cepr.net , comment 1 to 2 out of 2 comments http://www.cepr.net Tue, 21 May 2013 08:49:05 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/cepr-blog/austerity-the-path-to-prosperity#comment-16181 Think about it. Stimulus spending is even more important as our economy is now more dependent on consumer spending than our export economy was during the Great Depression. - Theodore Wirth Thu, 26 Apr 2012 11:59:05 +0100 http://www.cepr.net/index.php/blogs/cepr-blog/austerity-the-path-to-prosperity#comment-16158 Problems with the normal adjustment process that needs to occur to support growth during a period of fiscal consolidation were totally predictable in the U.K., too. Households remain deleveraged and therefore cannot increase spending to smooth consumption expenditures. The BoE's policy is near zero, so there's little room for monetary policy to offset the contractionary effects of deficit reduction. And the pound is obviously going to remain strong with all of the capital flowing out of mainland Europe. - JSeydl Thu, 26 Apr 2012 02:45:14 +0100