Procyclicalists Across The Atlantic Too
Jeffrey Frankel’s Weblog
July 30, 2012
Commentary by: Jeffrey Frankel, James W. Harpel Professor of Capital Formation and Growth
“My preceding post bemoaned the tendency for many US politicians to exhibit a procyclicalist pattern of behavior: voting for tax cuts and spending increases when the economy is booming, which should be the time to save money for a rainy day, and then re-discovering the evils of budget deficits only in times of recession, thus supporting fiscal contraction at precisely the wrong time. Procyclicalists exacerbate the magnitude of the swings in the business cycle.”
Frankel also wrote “The Procyclicalists: Fiscal Austerity vs. Stimulus” for his blog on July 25, 2012.