Resumen de �Austerian� economics: : Does the Vienna school favor fiscal deficit reduction even in a subpar economy?

Lawrence H. White

• Does the economic analysis associated with the modern Austrian school favor a policy of restraining the government�s fiscal deficit even in a subpar economy, as suggested by those who (pejoratively) label such a policy �austerian�? Because resources are not superabundant even in a subpar economy, the answer is yes, unless (implausibly) the return on the last (lowest-payoff) dollar of government expenditure exceeds the return on private investment.