Matthew Smith

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The “crowding out” theory underpinning arguments to slash government spending should be viewed with scepticism. Image sourced from www.shutterstock.com

‘Crowding out’ and the fallacy of fiscal austerity

Matthew Smith, University of Sydney

In the lead-up to the federal government’s budget in May, we’ve been told to expect deep cuts in government spending. Such a policy is said to contribute to a short run decline in Australia’s economic…

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