This policy brief reexamines the effects of the Greek austerity experiment on its economy via a counterfactual analysis … consolidation measures that have been implemented in Greece between 2010 and 2014. We estimate that austerity explains almost the … entire collapse of Greek GDP after 2009. This result suggests that-ceteris paribus-, in the absence of austerity, the Greek …

After a brief introduction dealing with critical opinions of some economists on the European austerity policy, the … authors point out that austerity as a means of achieving fiscal consolidation and financial stability is applied when the … fiscal domain is weak. After analyzing the effects of the 2009 crisis on some indicators and austerity measures taken by …

the euro crisis. It presents new econometric estimates on the link between cumulative GDP growth and fiscal austerity … closely related to the harshness of fiscal austerity. Cumulative multiplier estimates are found to vary in a range from 1.4 to …, a reasonable approximation of the size of the output losses due to fiscal austerity in the euro area during 2011-2013 is …

generate optimal policies that resemble "austerity" measures. Optimal policy prescribes front-loaded fiscal consolidations and …