Fiscal consolidation: At what speed? | vox
“The econometric evidence is rough, however, and may not carry the argument. Adjustment fatigue and the limited ability of current governments to bind the hands of future governments are also relevant. Tough decisions may need to be taken before fatigue sets in. One must realise that, in many cases, the fiscal adjustment will have to continue well beyond the tenure of the current government. Still, these arguments support doing more now.”
Words not too comforting in these reasonably hopeless times, another way of saying that the proverbial “free lunch” is very far away.
See on www.voxeu.org