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Newish Romer & Romer paper is fascinating. Looks at the GDP aftermath in OECD countries hit by finl crises 1980-2017. Ability of fiscal to respond (where low debt = lots of space; high debt = not much fiscal space) really important. brookings.edu/wp-content/upl… 
Captain obvious? No! Really actually pretty interesting actually. Why? Because countries worried that they might *at some point* run out of fiscal space sometimes fiscally tighten too early, making the country poorer.
Any clues as to which countries might have delivered large scale procyclical austerity, not because they had to? In the last decade Austria and the UK.
Romer & Romer went through @TheEIU reports extracting narrative rationale for the switch to austerity during episodes of high financial distress.
Any last words from Romer & Romer (summarising @TheEIU) on the UK and Austria’s approach to fiscal policy in the aftermath of the GFC?
