The advocates of austerity exaggerate more dangerously still. Those remedies are not available now: interest rates are already low and rich-country currencies cannot all depreciate at once. Without those cushions, fiscal austerity is not likely to boost growth.
Barroso said :"There is no more room for deficit spending."The president of the European central bank, Jean-Claude Trichet, also dismissed the idea that budget cuts could torpedo the fragile economic recovery that is taking hold. "The idea that austerity measures could trigger stagnation is incorrec