« Global Income Distribution Since 1988 | Main | 'The Share of Borrowers with High Student Loan Balances is Rising' »

Tuesday, May 27, 2014

The FT is on a Roll. Not.

Kevin O'Rourke:

The FT is on a roll: In an otherwise unremarkable editorial about the upshot of the elections, the FT comes up with this quite remarkable statement:

The only viable path for France is to press ahead with tax cuts and spending reductions that can sustain growth.

Is the FT really saying that in a Keynesian short run, such as we find ourselves in just now, the balanced budget multiplier is negative? Really? Or that the spending multiplier is negative? Or is it perhaps denying that the Eurozone currently finds itself in such a Keynesian short run, in which a lack of demand is the key constraint on growth? (Let’s not even get into the debate about the long run relationship between growth and the size of the state in Europe, although I can’t help writing down one word: Scandinavia.)

And is the FT really claiming that continuing with this programme would make all those FN voters switch to the socialists and UMP?

Really?

    Posted by on Tuesday, May 27, 2014 at 08:55 AM in Economics, Fiscal Policy | Permalink  Comments (16)

          


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.