Economic illiteracy in the service of economic misanthropy: An Econ 101 reminder of the meaning of the multiplier for austerians

Here is a quote from a recent pro-austerity article in an Establishment Greek newspaper: “Let us not forget that [Greece’s] primary surplus in 2009 was 10% and the result was a recession of 2.8%. Thus the fiscal multiplier was -3.5, not 0.5, not 0.75, not 1.7!” The author’s purpose, of course, was to argue that the IMF’s mea culpa regarding the mis-calculation of fiscal multipliers was, in fact, grossly exaggerated; that if there was an error it was one of over-estimating Greece’s multiplier rather than underestimating it. Indeed, through his illiterate eyes, Greece’s multiplier appears to the article’s author… negative, a negative 3.5, and thus he comes to the remarkable conclusion that the nation’s problems would be, as the author in fact argues, “to hand over the keys” to Greece’s creditors.

It is now becoming obvious that economic illiteracy has forged an unbreakable alliance with economic misanthropy and self-hatred by certain members of the Greek Establishment’s Commentariat. But let me, for now, stick to the ‘economic illiteracy’ part of this unholy alliance.

As high school students taking economics know,

Y = Jμ – Wλ


  • Y is national income (GDP)
  • J are the injections into a macroeconomy (i.e. the sum of government expenditure, export income and, of course, investment)
  • W are the withdrawals from the macroeconomy’s circular flow of income (i.e. the sum of taxes paid, expenditure on imports and money saved)
  • μ is the injections multiplier, which in turn equals to 1/m, with m being the percentage of the last euro of national income that was withdrawn from the macroeconomy’s circular flow of income (e.g. taxed by government, spent on imports or saved) – m is also known as the marginal propensity to withdraw
  • λ is the withdrawals multiplier, which equals the ratio (1-m)/m

What happened in 2009 in Greece, and of course elsewhere, was that investment suddenly fell sharply (following the Credit Crunch, the reversal of capital flows into the Periphery, and the increase in interest rate spreads etc.). Thus, injections J fell considerably. With a value of m approximately equal to 0.5 (i.e. of the last euro of GDP 50 cents were either saved, spent on imports or saved) giving an injections multiplier μ of around 2, for every billion of lost investment GDP fell by 2 billion. As national income fell, say by 2 billion, taxes fell too and, to boot, the government’s expenditure increased due to the increase in unemployment and the extra costs of unemployment (and other related) benefits – not to mention the money that went to prop up the defunct banks.

Thus, in 2009 we had both an increase in the government deficit (and expenditure) and a reduction in national income (the recession of 2.8% that the article mentioned). This is the stuff of recessions. But to surmise from this observation that the injections multiplier (which equalled 2 during these developments) was negative (and equal to -3.5) is the height of economic illiteracy! 

So, the question becomes: Why do ‘venerable’ newspapers publish such illiterate tracts? The answer, I am afraid, must be sought in the Establishment’s desperation to persevere with an austerity program that even its authors, the IMF, has abandoned. And why such a commitment? Because it is essential to the preservation of the alliance between Greece’s time honoured Cleptocracy and our newfangled Bankruptocracy. 

34 thoughts on “Economic illiteracy in the service of economic misanthropy: An Econ 101 reminder of the meaning of the multiplier for austerians

  1. Pingback: La cólera antialemana del FMI y su relevancia para la periferia deprimida de la Eurozona | El Blog de Juan Pérez

    • Dean – Exactly why “primary deficit” is irrelevant and masks the truth. Also

      Buy Germany time for what?

    • The primary deficit is irrelevant as long as we accept to receive the loans and service the debt.Once and if we decide to refuse them the primary balance dictates whether we can do away with external financing or not, which is not irrelevant.

      Dean simply shows that the PSI haircut was anything but a haircut.The PSI itself has nothing to do with the primary deficit and you keep connecting the two.

  2. It is more than that…

    Versailles Treaty style…. Yanis is perfectly right

    Sorry this is in Greek…

    SOS! Ποιος ο πραγματικός στόχος του μνημονίου;

    Η μεγαλύτερη πολιτική και οικονομική παραπλάνηση στην Ελλάδα των τελευταίων δεκαετιών είναι ότι το μνημόνιο έχει στόχο τη διάσωση της χώρας και την ομαλή έξοδό της από την κρίση.Όπως αποκαλύπτουν σήμερα τα «Επίκαιρα», το πρόγραμμα της τρόικας αποσκοπεί σε μια ες αεί υποβάθμιση του βιοτικού επιπέδου των Ελλήνων ως δομικό στοιχείο της συνταγής και όχι ως μεταβατικό στάδιο που θα οδηγήσει στην ανάκαμψη.Τα στοιχεία που παρουσιάζει στο κείμενό του ο χρηματιστηριακός τεχνικός αναλυτής, Πάνος Παναγιώτου, αποδεικνύουν ότι η εφαρμογή του μνημονίου, το οποίο έχει στόχο να κρατήσει την Ελλάδα στο ευρώ, μέχρι να ολοκληρωθεί θα έχει επιφέρει συνέπειες εξίσου καταστροφικές με αυτές ενδεχόμενης επιστροφής της χώρας στη δραχμή.Η περαιτέρω φτωχοποίηση της ελληνικής κοινωνίας θα είναι αντίστοιχη με αυτή που θα επικρατούσε αν η Ελλάδα υιοθετούσε πάλι το εθνικό νόμισμά της, με τη διαφορά ότι δεν θα έχει τα οφέλη απ’ αυτό αλλά ούτε και προοπτική ανάκαμψης. Θα πρόκειται στην ουσία για ένα βιοτικό επίπεδο επιστροφής στη δραχμή, εντός ευρώ όμως.Το 2009 οι ενέργειες της νεοεκλεγείσας κυβέρνησης Παπανδρέου, έδωσαν μια άλλη διάσταση στα οικονομικά προβλήματα της χώρας, κάνοντας μέσα σε μια νύχτα την πτώχευσή της και την προσφυγή σε ένα μηχανισμό στήριξης ουσιαστικά αναπόφευκτες.Αυτό διαφαίνεται και στην παραδοχή, ήδη από τον Δεκέμβριο του 2009, του υπουργού Οικονομικών, Γιώργου Παπακωνσταντίνου, όπως αποτυπώνεται σε «ευαίσθητο» έγγραφο της αμερικάνικης πρεσβείας στην Αθήνα που διέρρευσε στα Wikileaks.Όπως αναφέρουν τα «Επίκαιρα», σύμφωνα με το έγγραφο, σε εμπιστευτικές συζητήσεις που έγιναν στις 18 και 21 Δεκεμβρίου στην Αθήνα μεταξύ του αμερικανού εκπροσώπου του υπουργείου Οικονομικών των ΗΠΑ για θέματα Ευρώπης, Μάθιου Χάαρσαγκερ, και αξιωματούχων της ελληνικής κυβέρνησης και των ελληνικών τραπεζών, ο υπουργός Οικονομικών της Ελλάδας, Γ. Παπακωνσταντίνου, είπε ότι «υπάρχει η συνειδητοποίηση πως μια χώρα της Ευρωζώνης μπορεί να πτωχεύσει και ότι η ΕΕ ή το ΔΝΤ θα πρέπει να παράσχουν στήριξη αν προκύψει μια τέτοια κατάσταση».Έξι μήνες αργότερα η Ελλάδα υπέγραφε το μνημόνιο συνεργασίας με το ΔΝΤ. Οι επίσημες προβλέψεις της τρόικας και ελληνικής κυβέρνησης έκαναν λόγο για επιστροφή της Ελλάδας στην ανάπτυξη και στις αγορές στα τέλη του 2012.Η πραγματική πρόβλεψη του ΔΝΤ, ωστόσο, ήταν διαφορετική απ’ αυτή που δημοσιεύτηκε το 2010 απλώς και μόνο για να πειστεί ο ελληνικός λαός να αποδεχτεί το μνημόνιο και ήταν πολύ πιο κοντά σε αυτή που δημοσιεύτηκε στην πέμπτη αναθεώρηση του προγράμματος, όπου αναφέρονται τα εξής: «Η ανάπτυξη αναμένεται να παραμείνει χαμηλότερα από τα μέσα προ κρίσης επίπεδα για μια παρατεταμένη περίοδο εντός του πλαισίου της εμπειρίας από χώρες που υλοποίησαν εσωτερικές υποτιμήσεις. Στην πραγματικότητα, η απαραίτητη ανακατανομή των πόρων προς τον εμπορεύσιμο τομέα δείχνει ότι η τρέχουσα ύφεση έχει ένα σημαντικό συστατικό μονιμότητας».Είμαστε ακόμη στο 50% της εσωτερικής υποτίμησηςΔεν είναι τυχαίο που ο σημερινός υπουργός Οικονομικών, Γιάννης Στουρνάρας, όπως αναφέρει το δημοσίευμα, προβλέπει την αθροιστική συρρίκνωση του ΑΕΠ της Ελλάδας στο 25% μέχρι το 2014 ούτε θα πρέπει να αποτελέσει έκπληξη αν το ΑΕΠ μειωθεί ακόμη περισσότερο, αφού αυτό θα αποτελεί απλώς αναθεωρημένο στόχο του μνημονίου, το οποίο εξαρχής επιδιώκει την ύφεση ως μέσο επίτευξης της επιθυμητής εσωτερικής υποτίμησης. Ούτε θα πρέπει να θεωρείται συμπτωματική η απογείωση του χρέους ως ποσοστό του ΑΕΠ, αλλά «παράπλευρη απώλεια», την οποία η τρόικα και η ελληνική κυβέρνηση γνώριζαν και αποδέχτηκαν απ’ την πρώτη στιγμή, αφού η εσωτερική υποτίμηση προκαλεί ύφεση και η ύφεση μείωση του ΑΕΠ και εκτίναξη του λόγου χρέους/ΑΕΠ.Έτσι, στην πραγματικότητα η πτώχευση της Ελλάδας δεν ήταν μια απροσδόκητη συνέπεια του μνημονίου ή της αποτυχίας υλοποίησής του, καθώς το ίδιο το μνημόνιο αποτελεί από την πρώτη στιγμή το πρόγραμμα ελεγχόμενης χρεοκοπίας της χώρας, με μοναδικό στόχο αυτή να κρατηθεί πάση θυσία εντός ευρώ για να μην απειληθούν ευρωπαϊκά και άλλα συμφέροντα.Σύμφωνα με δύο ανεξάρτητες εκθέσεις, η πρώτη από το ίδρυμα Open Europe στο Λονδίνο και η δεύτερη από το πανεπιστήμιο London School of Economics και το ίδρυμα CERP, η Ελλάδα μέχρι στιγμής έχει πετύχει μόλις το μισό της εσωτερικής υποτίμησης που επιθυμεί η τρόικα και προβλέπεται στο μνημόνιο. Σε συνομιλία που είχε ο συντάκτης του κειμένου με τον επικεφαλής της έρευνας για την έκθεση του Open Europe, Ραούλ Ρουπάρελ, είπε ρητά και κατηγορηματικά ότι η Ελλάδα έχει να υποστεί από δω και πέρα «άλλο τόσο» εσωτερική υποτίμηση όσο υπέστη μέχρι τα τέλη του 2012.Είναι λοιπόν δεδομένο ότι για την τρόικα η εσωτερική υποτίμηση και επομένως η ύφεση και η αύξηση της ανεργίας πρέπει να συνεχιστούν μέχρι η Ελλάδα να θεωρείται ανταγωνιστική έναντι της Γερμανίας μέσα στην Ευρωζώνη και κάτι τέτοιο συνεπάγεται περισσότερα μέτρα και μεγαλύτερη οικονομική αποδυνάμωση των Ελλήνων, με άμεσους ή έμμεσους τρόπους.Η Ελλάδα λοιπόν χρειάζεται το συντομότερο μια νέα συμφωνία, αφενός με τους πολίτες και αφετέρου με τους εταίρους της, Ευρωπαίους ή μη, η οποία θα πρέπει να έχει βραχυπρόθεσμους και ρεαλιστικούς στόχους και ουσιαστική και μακροπρόθεσμη προοπτική.Τμήμα ειδήσεων

    • Staying in the Euro with all the drachma side-effects… or the making of an new Kossovo…

    • Defencenet is an idiot publication of conspiracy theorists, mixed up with theocratic fanatics waiting for Istanbul to be returned without a fight according to prophecy. We are talking about some seriously disturbed minds here. Defencenet is notoriously out of analysis target. If you really want to do something right, your read the DefenceNet nonsense analysis for entertainment first, and then do the exact apposite. Nothing but nonsense galore. (Vlakies sto tetragono)

    • You are right about it, but it is a lot of fun reading the comments there.
      However the article was quoting epikaira.

  3. @Demetri

    It is clear that the needed reforms are not being implemented in Greece. According to some, this is why the Troika is tightening the “austerian belt” so hard. But I think you are mistaken in your assesment that noone here is anti reform. Mr Varoufakis is the only greek that lies on the anti austerity side that I know of, that can back his claims with a set of reasonable arguements and a coherent theory. That is why he is being misused and misquoted by all manner of anti reformists and this is were my critisism lies. At the end of the day, the EZ will eventualy collapse or it won’t. That we don’t know. Maybe Berlin and Frankfurt will decide it’s time for a policy change, or maybe they won’t. Again, we don’t know. The only thing we DO know, is that regardless of whether the memorandum is a good plan or not, the only reason we needed a program like that in the first place is because we defaulted again, and that is on us. Regardless of what our EZ partners will choose to do, we need to change. And I just do not see that point being stressed enough here.

    • @ Ilias Lerias

      Reforms and austerity are not one and the same.
      Therefore one can be anti-austerity without being anti-reform.
      It is a matter of policies (interests) and timing ,that today change things for the worse ,thus not giving the chance for any good Greek comeback ,anyway.

      We certainly need to change and yes that Greek change is not stressed enough here ,but for a reason.

      One didn’t built the house needed when one could (and certainly not because one was lazy and/or corrupt) ,and it is impossible to built it now during the storm.
      A good rain waters the earth, a cataclysm destroys. The cataclysm is not ours. It is on the European level and its effects are passed on to Greece ,on purpose. We are connected through this European system. There is no escaping this. First change must be on the European level. And they will do it ,after enough destruction. And destruction is almost already the same as if we got out of the euro.

      When EU got created ,the most important connection was not that of people ,but of their corruption and better control of it on the official level.

      “Regardless of what our EZ partners will choose to do, we need to change.”

      Agreed. As long as ,when we make the changes ,there is no destructive interference. And now there is. Because all this talk about change from the official austerians is a smokescreen.
      They tight the belt not for us ,Greeks and rest of Europeans ,but for them and only them.

      “the only reason we needed a program like that in the first place is because we defaulted again”

      No ,we needed a program anyway. I am sure ,we agree on that.
      No ,we didn’t have to default and it wasn’t on us. Not even this. It was a plan that got executed with success to preserve the system.

      I am of the opinion ,that things could have been much worse ,if they hadn’t created this plan of deception. Greece could have been in a much worse state. At least this woke us up a bit.
      What i am also saying is that they hastened what was about to come anyway ,not for the real reforms and interests of everybody ,but for their interest of preserving their ways ,and with any advantage they could get.
      That is exactly what their kind of austerity does.

      Greece will not develop. It is not in the plans. It never was. Individually ,there are always Greeks that succeed. That is natural. But as a society ,it is simply not allowed. Certainly not for the last 50 years.
      Any growth will be kept at bay. Any advantage that may come ,will be passed on to the “North”. As always.

      So one of the greatest changes we must do ,is not becoming “Europeans” their way ,that is to have slaves somewhere. It is becoming “Europeans” as it should have been from the beginning.

  4. A good recession once in a while fixes things that otherwise won´t get fixed. Like rain cleaning the air. Of course permanent sunshine would be nice, but recessions and rain are needed.

  5. Mr Varoufakis,

    Having read the article in question, I think you are exaggerating. It is true that the multiplier was nowhere near -3.5 but the point of the article was not to estimate multipliers, but to show that there are structural problems in the Greek economy far worse than austerity. And while it is not right for the pro-memorandum side to muddle facts to get their point accross, you must know that the no-memorandum side is doing the same on a much larger scale. Indeed, they have been doing so for the past 35 years. If I can find one thing to disagree with with almost the entirety of your blog (which I follow closely) is how you almost always seem to forget that the greek economy is truly the last “soviet” economy in the continent. I still remember the article about 2 friends from Patra that wanted to create an e-shop to sell olive oil overseas and were asked for a…stool sample! If you wish to contribute to the discussion in and about Greece, as I am sure you do, you would do well to remind your readers the state of the greek economy prior to the crisis. We might be able to fare better without the troika austerity, but without reforms I think you would agree we will be in exactly the same spot, 10 years down the line.

    • @ Ilias Lerias

      I would say that noone in here is anti-reform.
      On the contrary.

      And i would even say noone in here is anti-memorandum.

      Everyone is against inane policies that have the opposite affect.

      For if you think that with these policies and these memorandums the reforms that are truly needed ,are truly being implemented ,you are mistaken.

    • Ilias,
      I do not welcome your view on structural problems in the Greek economy, far worse than austerity, in what rather looks reassuringly unsubstantiated in your effort to “hoist an argument” on the true nature of Greece’s economic toils as well as an effort to convey some critique to Prof Varoufakis. As an international economist myself, I am puzzled as to why you are instigating a critique towards Prof Varoufakis on his “unwilling to cast the Greek economy as the truly last Soviet”… I find it most lacklusterly nonsesical as well as rather inane to denounce the Greek economy as that of a Soviet Economy kind, considering that the Soviet was a political state construct, quite outside the political economic modus operandi, whereby in terms of an economic system, it was that of a closed-ended regional Co-Operative format with unique regionalism in centrally-dictated proletarian affairs, a rather non-Greek contemporary economic outcome. I find your views and yet your imposition as to what has gone sour in Greece – in terms of structural systemic economy and partisan politics, considering that you are alleging to the extension of free market liberalism (pseudo-liberal capitalism) in what you are instigating as Greece’s Soviet Cure, despite that this neoliberal institute is the undelying operator of castigation of the nation’s economy via its free markets’ price-subsidy dictation (the sovereign debt spread articulation by the Financial Markets) and fiscal subsidiy through the nation’s pauperising taxpayers (the requirement enforced to the taxpayers income towards bailing out private money centres through direct front-loading on the nation’s public debt), and a requirement of a mix of strong fiscal austerity (horizontal bugdet cuts, payroll cuts, payroll squeeze, extortive tax basis) and fiscal subsidy (higher indirect taxes, loosen corporate tax credits and expansionary tax base) within a vacuum of potent fiscal policy

      My question is: in what does the Greek economy resemble that of a Soviet type? For what is worth, the Greek economy is all but one of the Soviet kind. I would agree if you suggested that the contemporary Norwegian economic outcome resembles that of the Soviet; one needs to look at the stunning 67% of the state ownership of de facto profit yielding national state/private sector sharing of economics assets – indeed, a model attempted by Greek public services and policy makers, though through the requirement of the provision of the state guarantees and promise to absorb exogenous shocks, such as falling profits or further state guarantees of endogenous shocks, such as provision of supply shocks – such as investment spending to asset acquisition, CEO pay enhancements, perpetual corporate tax credits. For what is worth, the Greek economy does not resemble that of a Soviet, considering that the true ownership of public assets is rather small in its nominal share to the National Output. Indeed the state owns certain assets, though the real ownership of economic assets is a rather PRIVATE affair in Greece.

      As for your opinion in regards to the structural weakness (of alluded historic proportions) of the Greek economy: seriously??? How much do you know about other economies? Is the perfect storm-weathering German economy the de facto structural paradigm of contemporary economies with the majority of its Federal States in a serious state of bankruptcy – just because the Upper Federal Government precipitates a perpetual internal co-federal fiscal surplus transfer from rich fed-states and not from Central Government Budget, this does not make Germany a centrally structurally competent nation. Of course, it is its exports oriented economy, but this still does not explain the German structural paradigm, if one looks at the real status of terminal bankruptcy of German state/regional/federal/private/corporat/investment banks. Or is it the UK, which spends more to fiscally support its zombie private corporate thrifts than it spends to educating its youth? The UK economy is the biggest muted European Debt Time Bomb. The Swedish is a good economy, but for the Sweds to achieve such an outcome, they followed a decade-long National Strategic Plan that entirely avoided all that it is prescribed (enforced) to Greece at present.

      A friendly advice: select your arguments more wisely

    • Jerome – Your opinion on something please. The Euro is supposed to be a de-facto gold standard. Under a gold standard will the GDP “growth measurement” become irrelevant? And will deflation become the new standard by which economic prosperity is judged?

    • Ilias Lerias,
      you are absolutely right. The greek economy truly is the last “soviet” economy on the continent. It focuses mainly on heavy industry, and favours whatever organisation schemes and production methods will ensure it can switch to wartime production with the minimum of disruption and delay.

  6. “Self-hatred” , ακριβώς ! Νομίζω οτι για τους συγκεκριμένους προπαγανδιστές δεν μιλάμε τόσο για μισανθρωπία, όσο για μισελληνισμό.

  7. Does this mean that not the debt caused the Greek crisis, but the Greek crisis caused the debt? If so, w/o the multiplicator error, there would be noc risis at all? So in the decades before the crisis, the Greeks – or their ‘elites’- did not take on to much debt, did not build a bloated public sector which on top is comparatively inefficient, did not rob the state of the taxes due and so on?

    Pls. don’t take me wrong: as far as I understand, you are right about the arithmetics. But I believe the real problems were and still are not those errors made by other economists.

    • VSS – The real problem was the ECB monetising the Greek governments debt even though it knew it would cause today’s problems. and what you said also

  8. Pingback: Economic illiteracy in the service of economic misanthropy | Fifth Estate

  9. Dr. Varoufakis, having read the article in question, I will respectfully disagree with you to some extent.
    You write:
    “The author’s purpose, of course, was to argue that the IMF’s mea culpa regarding the mis-calculation of fiscal multipliers was, in fact, grossly exaggerated; that if there was an error it was one of over-estimating Greece’s multiplier rather than underestimating it.”
    You are isolating one specific point in the article. Perhaps understandably, since gross mistakes in basic economic theory are bound to greatly irk an economist. I, as a physicist who does not know very much about economic theory, noticed a different intent. The author uses this excessive -3,5 multiplier to advance an argument of “Greek exceptionalism”, if you will: Greece’s economy is so ill-structured that the country already was off the IMF method’s charts, and therefore the miscalculation is unimportant (and, by extension, it was Greece’s failure to properly implement austerity that took the economy off the rails, not the failure of the tools used to design the austerity package).
    I feel this is much more disturbing than an 11-year-olds-level mistake in a fundamental formula. It is cold-bloodedly disingenuous because Blanchard and Leigh specifically state that having established the multiplier error, they then calculated it in a sample that specifically excluded Greece and other countries under IMF programmes, and found the exclusion *did not* significantly alter their results. Greece was not an exception at all.
    While ‘venerable’ newspapers publishing economically illiterate tracts *is* indeed revealing, it pales in comparison with the implications of ‘venerable’ newspapers publishing bold-faced lies, I should think.

  10. It is high time these misanthropic, practices of the “Establishment” media are exposed for what they really are: hopeless, pathetic propaganda. Like you wrote even high schoolers could discredit such ridiculous efforts. There are two basic reasons that these people keep at it even though their efforts can be so easily discredited .

    Reason number one: Unfortunately the vast majority of the Greek population is economically and politically illiterate. For years the mainstream media succeeded in their efforts to control the flow of information and opinion thus keeping the majority of the public completely in the dark about all of the major political and economic milestones of the past 20 something years. The public was never allowed any input in any important decision like entry in the EU, the major treaties that bind the country and the adaptation of the euro currency. A referendum that would be considered absolutely essential for the political integration of these policies was of course out of the question for the Greek public. Our cleptocrats knew better. The rise of internet access is slowly changing all that but a lot of people especially over the age of 50 are still very susceptible to propaganda.

    Reason number two: They can’t do anything about it because they will lose their jobs. The mainstream media are under the complete control of the cleptocracy that controlled them and used them for their purposes all these years. Said cleptocracy are now through the bankrupt banking sector at the mercy of the foreign creditors. All the media conglomerates are having liquidity and credit troubles to put it mildly (one could say that they are outright bankrupt) so it is not difficult to put two and two together as to what interests they will serve, those that are absolutely essential to their immediate survival.

  11. Yanis – Bravo for having the oxygen to give the article oxygen. Of course the whole multiplier “story” is simply to confuse the population and to try and keep them on board for a few more months.

    You know I like to break things down to their fundamentals and this will be no exception. If taxes remain the same and government spending reduces inside the country GDP will decrease.

    If you ramp up the taxes to sadistic levels and at the same time you reduce the spending inside the country GDP will crash. I am positive my dog could understand this and he has no interest in economics.

    That’s it. For the IMF to talk about 1% here 2% here is an insult to their victims. And if they didn’t understand this very simple relationship as I have outlined then the powers that be at the IMF should be taken out of the operation and retrained and the organisation as a whole should re examine its recruitment procedures because it is clearly faulty.

  12. Nice article. And the comedians increase.
    I want a negative fiscal multiplier in my own imaginary country and i want it now.
    Can i have one Frau Merkauble?

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