No, "Transatlanticism" European! 0045 / .... It is known, except perhaps the "experts" often self-proclaimed who occupy the mainstream media, the economy is not an exact science. And what is this loosely as the laws of economics are never as theses more or less empirically verified. A recent IMF report is to confirm in a manner to be spectacular and quite commendable sense, is not less worrisome when things are measured light of the public interest. What is it? Own austerity policies is to impose cuts, ie to reduce public spending by assuming that rétabliera the overall balance (including budget, the deficit and thus generating debt loads for public finances due to interest payments). Except that a budget is made up of expenditure and revenue. The above reasoning is therefore that if what is saved due to the reduction in spending is not offset by a corresponding reduction in revenue. Intuitively, we sense that there is a good relationship between the two. Less government spending is also less support activity, fewer social benefits and therefore less consumption and less taxes returning. Economic theory therefore seeks to quantify the relationship between savings through fiscal austerity and loss of revenue from direct and indirect taxation. It results in a multiplier (fiscal multiplier). According to the IMF, the studies before the current crisis seemed to indicate that this ratio was close to 0.5. That is to say, he was "saving" two euros to recover as improved budgetary situation. In fact, this is not true. The report is rather close to 1, every dollar earned is immediately lost again because of the recession. This confirms in a very recent study documented a form of radical criticism signed by the chief economist of the IMF, presented as follows: "This paper examines the relationship between the errors of economic forecasting and fiscal consolidation policies during the crisis . We have established that, in advanced economies, more drastic fiscal policies were associated with lower than expected. A natural interpélation is that fiscal multipliers are substantially higher than what forecasters thought growth. " What this report does not, of course, is that the austerity policies imposed from these multipliers underestimated have been useless to put the economy back on track, while causing suffering and social misery among populations.
Posted on: Tue, 23 Jul 2013 11:27:26 +0000
Trending Topics
Recently Viewed Topics
© 2015