Home > Fiscal Policy, Growth, Unemployment > Austerity = negative multiplier effect

Austerity = negative multiplier effect

Austerity - GDP UnempIn the NYT it was stated that Moody’s are predicting that a tighter fiscal policy – cuts in government spending and increased taxation – will slow economic growth for 2013 by about 1.2 percentage points and prevent the unemployment rate from falling to 6.1 percent by the end of the year. Where is the effect of QE on these figures?

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