Paul Krugman Tells Us to Go Read Konczal and Jayadev

Krugman:

Expansionary Austerity?: In a terrific new working paper, MIke Konczal and Arjun Jayadev look under the hood of an Alesina/Ardagna paper that is being widely cited as evidence that austerity will lead to growth. They look to see how many of the austerity -> growth episodes actually involve fiscal contraction in a slump. Here’s a comprehensive list of those cases:

Ireland 1987

And as I among others have noted, the things that drove Irish expansion — devaluation, a boom...