confidence fairy love

confidence fairy

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  • "The idea was that spending cuts would make consumers and businesses more confident. And this confidence would stimulate private spending, more than offsetting the depressing effects of government cut-backs.

    Some economists were not convinced. One critic referred to claims about the expansionary effects of austerity as amounting to belief in the confidence fairy."

    - Paul Krugman, Austerity not the only way , theage.com.au, 30 Oct 2011.

    October 30, 2011