The Problem with Keyensians and Austerity: “After all, doesn’t Y = C+I+G+(X-M) tell us everything we need to know about the economy?”

“Austrians do not see “austerity” as a policy, but rather a reality. This is not a morality play (even if Krugman has accused us of enjoying the infliction of “pain”), but rather a bowing to reality of the fact that one cannot fix a broken economy by pretending it is not broken. “ [KRUGMAN IN WONDERLAND]

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