The ‘official’ cost of austerity Simon Wren-Lewis – Mainly Macro

austerity

austerity (Photo credit: 401(K) 2013)

In his latest blog, Oxford economist, Simon Wren-Lewis, takes a hard look at the latest research evidence into the cost of austerity in Europe. The article plus the underlying research paper are STRONGLY RECOMMENDED if you are looking for hard data on the impact of austerity policies.

via The ‘official’ cost of austerity Simon Wren-Lewis – Mainly Macro.

For the busy reader, let me cite Wren-Lewis’ overview:

That means that over 3 years nearly 10% of Eurozone GDP has been needlessly lost through mistakes in policy. This is not the wild claim of a mad macroeconomist, but what simple analysis backed up by mainstream models tell us.

Wren Lewis also looks at the impact on the UK, based upon OBR data but alludes to the risk that the OBR data may be under-stating the consequences for the UK.

Let me turn this to an open question:

Why are Europe’s political leaders and he mainstream media in such a hurry to whitewash the impact of austerity in Europe?

Any thoughts?

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Domestic obstacles keep Delhi from realistic economic choices – Asian Review – Globaltimes.cn

Logo of Global Times

Logo of Global Times (Photo credit: Wikipedia)

This article by Liu Zongyi in China’s popular Global Times is STRONGLY RECOMMENDED. Check it out!

via Domestic obstacles keep Delhi from realistic economic choices – Asian Review – Globaltimes.cn.

The author,  Liu Zongyi,  a research fellow of Shanghai Institutes for International Studies takes a a hard look at strategic choices open to India; it concludes that China offers more promise than the US but many political forces in India will be wary, so the conclusion is that this will dampen India’s growth opportunities.

Personally, I think that the article is presents a balanced and realistic viewpoint.

Any thoughts?

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