India & Brazil: Expansionary Fiscal Austerity vs Contractionary Fiscal Expansion

In a recent post I paraphrased Lord Skidelsky, who said: “Fiscal contractions are not expansionary, period”, with: “Fiscal expansions are not expansionary, period”, or, “Fiscal contractions are not contractionary, period”!
India and Brazil illustrate:

India-Brazil

 

3 thoughts on “India & Brazil: Expansionary Fiscal Austerity vs Contractionary Fiscal Expansion

  1. RBI Governor Rajan has been cutting interest rates…thus showing flexibility and not dogma on the role of a central bank….

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