Thomas Molloy: Austerity faces challenges as negative effects hit home
AUSTERITY took a bashing this week. Italy's Mario Monti was the latest right-wing leader to question whether cuts are working when he unexpectedly reduced taxes for the lower paid on Tuesday evening.
The International Monetary Fund's thoughtful report on austerity also bears serious consideration. The IMF likes to think out loud and this week's reflections needs to be seen in that light.
The report does not dismiss the need for austerity but admits openly that the IMF underestimated the negative effects of austerity here and elsewhere.