Keynes vs. Alesina. Alesina Who? - BusinessWeek

A lovely debate over what excites the market's "animal spirits" more, whether spending or spending cuts, is taking place.

The US seems to remain in favor of increased spending in order to prop up its economy and strengthen job growth. Europe and other G20 nations are persuaded that austerity is more fitting. The policy makers on either side have their own set of economists arguing in favour of their approach. On the pro-stimulus side, are the new Keynesians. On the anti-stimulus end are those who support the work of Harvard economist Alesina.

The proponents and their key arguments are summarised in this BusinessWeek article, entitled Keynes vs. Alesina. Alesina Who?.

Niall Ferguson on the Sovereign Debt Crisis

Niall Ferguson, Laurence A. Tisch Professor of History at Harvard University and William Ziegler Professor at Harvard Business School and author of a handful of very good books including The Acsent of Money, Empire: How Britain Made the Modern World, and Colossus: The Rise and Fall of the American Empire, offers (care of Business Insider - and no, I don't have a financial stake in their wellbeing) a forty-odd frame slide presentation explaining the forces at play that have brought the developed world to the place we find ourselves in today.

Read and let us know if you agree or disagree.