Can austerity programs make economies grow? A fierce debate is going on, starting with a study by Alberto Alesina. Now, he replies to his critics. To me, Alesina sounds softer. He attacks Paul Krugman, but he admits that spending cuts might reduce growth in the short run if they are badly executed – while still stressing that they were the only way to get government debt down. By Patrick Bernau Weiterlesen →