While many around the world have watched the run-up to this week's European Parliament election with bated breath, younger Europeans themselves have apparently been focused on the final episodes of HBO's "Game of Thrones." If they stay home, their own winter will be coming.
After years of low inflation, investors and policymakers have settled into a cyclical mindset that assumes advanced economies are simply suffering from insufficient aggregate demand. But they are ignoring structural factors at their peril.
A correlation between fiscal retrenchment and economic growth tells us nothing about the underlying relationship between the two. This should be borne in mind in light of new research suggesting that austerity may well be the right policy in a recession.