Abstract
In 2011, the Nobel laureate economist Paul Krugman characterized conservative discourse on budget deficits in terms of “bond vigilantes” and the “confidence fairy.” Unless governments cut their deficits, the bond vigilantes will put the screws to them by forcing up interest rates. But if they do cut, the confidence fairy will reward them by stimulating private spending more than the cuts depress it.
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Skidelsky, R., Fraccaroli, N. (2017). Debating the Confidence Fairy. In: Austerity vs Stimulus. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-50439-1_7
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DOI: https://doi.org/10.1007/978-3-319-50439-1_7
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-50438-4
Online ISBN: 978-3-319-50439-1
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