HKS Affiliated Authors
Frank and Denie Weil Director of the Mossavar-Rahmani Center for Business and Government
Charles W. Eliot University Professor
Excerpt
Excerpt
Why Public Investment is really a free lunch. Lawrence Summers, October 7, 2014, Opinion. "The IMF finds that a dollar of spending increases output by nearly $3. The International Monetary Fund has long been a stalwart advocate of austerity as the route out of financial crisis. Fiscal consolidation – a euphemism for cuts to government spending – is a staple of the fund’s rescue programmes. A year ago the IMF was suggesting that the US had a fiscal gap of as much as 10 per cent of gross domestic product. All of this makes the IMF’s recently published World Economic Outlook a remarkable and important document..." Link