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bilby commented on the word confidence fairy
"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