Last year, we got to see whether monetary policy could offset fiscal austerity from Congress.
Your gilded capital is gilding itself more slowly. Tighter federal spending is the reason.
Beware of economists yielding regressions, but the latest work on the effects of austerity should make you stand up and take notice.
These two charts suggest that the fiscal drag will be less of a drag in the years ahead.
Larry Summers - and conventional wisdom - say Europe has been experiencing austerity. A Heritage scholar disagrees. So who's right?
You've heard about all the problems with Reinhart and Rogoff. But how about the problems with Baker, Bloom and Davis?
Three years ago, in the Canadian Arctic, global leaders made a pivot toward austerity, in Washington this month, they seem to have moved the other direction.
Can the Federal Reserve offset austerity? In 2013, we've been determined to find out.
The problem in American politics today isn't that Krugman, Reinhart, and Rogoff couldn't agree on a plan they're all happy with. It's that the Republican Party would never agree to it.
Yes, the Excel error heard 'round the world has made it to late night.
This time wasn't all that different, actually.
Lost in the debate about Reinhart-Rogoff is the big question: does austerity help growth?
One of the more influential studies used to argue for austerity has come in for an extensive new critique. (Updated with a response from Reinhart and Rogoff.)
Friday's big jobs report will be our best read on which force is winning in shaping the economy in 2013.
Former Virginia governor Jim Gilmore argues that Republicans' focus on austerity and deficit reduction is the wrong message for the moment.
It's the private sector vs. government
The U.S. reacted to higher debt levels with even higher deficits. By one measure, that makes us profligate.
The IMF thought that austerity in Greece and other European countries wouldn't slow growth that much. Its chief economist says they were wrong.
Congress may have averted the fiscal cliff. But the United States is still going to hike taxes and cut spending significantly in 2013—more than many European countries that are engaged in austerity programs.
According to a new study, each dollar in spending cuts knocks $1.80 off of growth. But tax increases barely hurt growth at all.