Mon, Dec 19, 2011 - Page 9 News List

The worst and the best of austerity policy planning

As European countries take turns in the economic-crisis spotlight, knee-jerk decision-making could hinder long-term development

By Jean Pisani-Ferry

Second, they should design and implement smart consolidations, even if they take a little more time to design and a little more time to implement. This entails finding the optimal balance between spending cuts and tax increases and identifying the least harmful measures over the medium term. Doing so will take time, thought and an iron will.

Jean Pisani-Ferry is director of Bruegel, an international economics think tank, professor of Economics at Universite Paris-Dauphine and a member of the French prime minister’s Council of Economic Analysis.

Copyright: Project Syndicate

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