Cowen on the Austerity Facts Foofaraw

I don’t wish to respond point-by-point to some of the writings in the blogosphere, but given the above, Ryan Avent also is not looking deeply enough.  Both he and Brad Plumer did not see that the posts in question clearly distinguished between spending cuts and “austerity” (Brad did issue what is arguably a correction.)  I admire both bloggers and read them regularly, but these two posts both fail; here are some comments from Veronique.  I would say there is a dominant narrative, repeated many times in not always precise language, which people find it very hard to think outside of.

Most of the time “austerity” is a misleading word and more precise concepts — readily intelligible I might add — are available.  There really are some times when we should relabel austerity as “mostly tax increases,” but many people are reluctant to do so.

via Economic growth is not contractionary, and other confusions about stimulus and spending — Marginal Revolution.

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