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Austerity rules and the government policies toward expansion

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Abstract Austerity is a medieval issue: when the government decides over what to do in time of recession and debtness people are the target, their consumption is wanted to decrease, this article is a testimony about the polemics behind austerity rules and how really austerity benefit to growth or the opposite, i discuss how austerity can benefit to the public deficit if consumption is controlled through wages. Afterward if Sir John Manyard Keynes has emphasized on the importance of demand to heal recessions i believe that austerity as a fact would permit to the State to face over darkness of harsh times if the government is willing to use the monetary policy through bonds and short rates by reducing the gap between expenditures and people consumption. JEL Classification. E31, H62
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Title: Austerity rules and the government policies toward expansion
Description:
Abstract Austerity is a medieval issue: when the government decides over what to do in time of recession and debtness people are the target, their consumption is wanted to decrease, this article is a testimony about the polemics behind austerity rules and how really austerity benefit to growth or the opposite, i discuss how austerity can benefit to the public deficit if consumption is controlled through wages.
Afterward if Sir John Manyard Keynes has emphasized on the importance of demand to heal recessions i believe that austerity as a fact would permit to the State to face over darkness of harsh times if the government is willing to use the monetary policy through bonds and short rates by reducing the gap between expenditures and people consumption.
JEL Classification.
E31, H62.

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