Hemlock for economic students
(Putting effective demand in the long run and prices of production together)
Sunday, July 1, 2012
Galbraith on the consequences of fiscal austerity
What would a significant fiscal adjustment, as the jumping of the so-called fiscal cliff would require next year, would be you ask? Jamie Galbraith has provided a timely answer in the Nation (here; hat tip Nathan Cedrus Tankus). In short: "a big deficit-reduction program would destroy the economy, or what remains of it, two years into the Great Crisis."