tag:blogger.com,1999:blog-2277215496195926573.post6311560593223696278..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Does Mark Blyth understand austerity?Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2277215496195926573.post-42664242763383435702015-07-09T19:29:19.046-07:002015-07-09T19:29:19.046-07:00Your assumption surprised me. That said, I didn...Your assumption surprised me. That said, I didn't have an expected answer, but non-the-less, a surprise answer.<br /><br />I will ponder the implications, particularly in view of the Greek-euro situation. <br /><br />Thanks.Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-27862727878224408162015-07-09T07:45:41.990-07:002015-07-09T07:45:41.990-07:00I was assuming austerity is where GDP is lower tha...I was assuming austerity is where GDP is lower than the level at which inflation becomes unacceptable: NAIRU if you like. As the possibility of an economy producing more than it consumes, that happens where a country has a balance payments or "external" surplus. But a country's external position is bound to gyrate between deficit and surplus: i.e. it's impossible to keep it in exact balance all the time.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-91814329353476914412015-07-09T05:53:29.944-07:002015-07-09T05:53:29.944-07:00We are struggling a little with the meaning with t...We are struggling a little with the meaning with the word "Austerity"?<br /><br />Are we describing an economy that produces more than it consumes at current prices? Such an economy would be the victim of "Austerity".<br /><br /><br /><br />Roger Sparkshttps://www.blogger.com/profile/01734503500078064208noreply@blogger.com