The term austerity is gaining currency in some Malaysian circles. The press and several brokers have mentioned it to describe what they think the Malaysian government is doing in light of various renegotiation or cancellation of megaprojects. Austerity is a sexy term to pull in some eyeballs but really, I think the term has been […]

I am a supporter of regionalism. Despite whatever jokes I may have about the euro, I do not want to see its disintegration. While I have refined my opinion by stressing on the importance of having similar economies coming into a union instead of having a disparate set of economies with wildly different setups and […]

This is an excerpt from an old article by Raghuram Rajan. The excerpt is a point on the necessity of having a fiscal austerity program during crisis times even when it is ideal to have it spread over time. It is not a new point, but it is worth to be highlighted as a reminder […]

Has austerity failed? In the sense of expansionary fiscal contraction, it has. Expansionary fiscal contraction, in short, suggests that government contraction will immediately expand the private sector. That particular interpretation of fiscal austerity has clearly failed to bear out in countries under crisis. It is like the argument that says reducing taxes will increase government […]