This is an excellent article from Gavyn Davies, the macro economist writing in his FT blog, citing latest research from Brad DeLong and Larry Summers. Check it out!
The optimal speed of fiscal adjustment | Gavyn Davies | Insight into macroeconomics and the financial markets from the Financial Times – FT.com.
This is really leading edge stuff and provides new evidence to challenge policy-makers stuck in austerity overdrive.
The article is primarily targeted at the US economy but I would argue that the implications are highly relevent and generalizable to the UK and many European economies struggling with the pain of extreme austerity.
Personally, I favour earlier fiscal adjustment. Do you?