Does austerity work? There’s no proof that it does

Markus Eberhardt interviewed by Viv Davies, 11 May 2014

The debt-growth link is essential to today's marcoeconomic policy choices. This Vox Talk discusses new evidence based on data on total public debt for 105 economies between 1972 and 2009 and two centuries of data for the UK, US, Sweden and Japan. There is no convincing proof that austerity works and that it is dangerous for policy makers to pretend otherwise.


Unfortunately the file could not be found.

Open in a pop-up window Open in a pop-up window


Download MP3 File (10.6MB)



See Also


Eberhardt,  M. 2013. 'Nonlinearities in the Relationship between Debt and Growth: Evidence from Co-Summability Testing'. CFCM Working Paper 13/06

Eberhardt, M. and Presbitero, A. 2013. 'This Time They're Different: Heterogeneity and Nonlinearity in the Analysis of Debt and Growth'. CFCM Working Paper 13/10




View Transcript

Topics: Macroeconomic policy
Tags: austerity, debt, GDP growth, Rogoff-Reinhart debate

Markus Eberhardt
Lecturer (assistant professor), School of Economics, University of Nottingham