More Magical Foreign Growth-Promoting Fiscal Austerity

Paul Krugman:

Magical Foreigners, Austerity Edition: [N:]ow the cause is fiscal austerity — and we keep hearing about supposed examples of countries that experienced a boom after tightening fiscal policy.... Canada in the 1990s... turns out to be a quite different story. Now we’re hearing about Ireland in the 1980s.... And whaddya know: this story is also not at all the way it’s being told (pdf). Yes, Ireland had fiscal austerity — but it also benefited from a devaluation and an...