To spend or not to spend: Is that the main question?

he debate over fiscal policy has reached a fork in the road. One way leads to maintaining or increasing the fiscal stimulus. This column argues that policymakers should take the other path. This would mean phasing out government expenditure while phasing in social protection programmes at the risk of a double-dip recession but potentially resulting in a more vibrant economy. Read Guillermo Calvo's article on EUVOX here. The author is Professor of Economics, International and Public Affairs at Columbia University.