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Tag: austerity

An increase in Italy and Spain’s risk premium

Uncertainty regarding election results in Italy and concerns of corruption scandals involving Spain’s Prime Minister, led to a rise in the risk premium of the peripheral countries in the last two weeks, fearing that the possible change of government in

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Two main austerity measures approaches

There are two ways to approach the economic policy: The Keynesian approach Wishes to increase public spending by increasing the deficit during recessions, in order to stimulate the economy. To encourage public spending the government would usually reduce taxes. The

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