Monday, April 11, 2011

Austerity Is Austere

The IMF has cut its UK growth forecast for the third time this year. Apparently, the IMF staff doesn't buy the idea of "expansionary contraction." Neither does Larry Summers: see his answer to Martin Wolf's last question in this video. Incidentally, though I have mixed feelings about Summers, I think his performance here is impressive for the way in which it acknowledges criticism and reflections tensions between Summers' own judgments and the numerous objections that have been raised to his policy advice from both right and left. Martin Wolf prods him just the right amount to get the most out of him.

One of his best lines (alluding to his stormy tenure as president of Harvard): "I am one of the few people who has ever gone to Washington to get away from politics."

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