It's worth noting that austerity is strongly correlated with GDP decrease only for those countries without an independent monetary policy (i.e. the eurozone).

It's worth noting that austerity is strongly correlated with GDP decrease only for those countries without an independent monetary policy (i.e. the eurozone). People have been worried about the zero lower bound but it doesn't seem to have had much of an effect in practice. http://www.themoneyillusion.com/?p=29692 http://www.themoneyillusion.com/?p=29692