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From Austerity to Growth in Europe: Some Lessons from Latin America

In: Life After Debt

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  • Stephany Griffith-Jones

Abstract

This paper is in two sections. The first briefly outlines some relevant lessons from the Latin American debt crises for the current European financial crisis. The second part deals with the European crisis, discussing pan-European measures to promote growth as well as exploring options for reducing and/or postponing debt servicing in European countries with difficulties for market access, with a view to opening greater space for national growth-oriented strategies within them. It then examines the possibility of less fiscal consolidation in European countries with market access, and shows in some detail, using the example of the UK, how such a policy would lead to far higher output and employment.

Suggested Citation

  • Stephany Griffith-Jones, 2014. "From Austerity to Growth in Europe: Some Lessons from Latin America," International Economic Association Series, in: Joseph E. Stiglitz & Daniel Heymann (ed.), Life After Debt, chapter 3, pages 145-170, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-137-41148-8_8
    DOI: 10.1057/9781137411488_8
    as

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