University of Greenwich • BA International Business

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Introduction to Economics for Business 1

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Explain the rationale for austerity programmes to reduce sovereign debt and discuss how far these have been successful in Greece and the UK

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This essay contains different economics views on debt and growth using Greece and the UK as examples. The paper looks into how the Keynesian Cross and Multiplier Model works and why government spending during a recession may boost investments and aggregate demand. The paper discusses the debate between authors: Reinhart, C. and Rogoff, K. (2010) Growth in a Time of Debt and the critique by Herndon, T., Ash, M. and Pollin, R. (2013) ‘Does High Public Debt Consistently Stifle Economic Growth? A ...

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• 10 pages's •
by ruepeck •
uploaded 2018

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University of Greenwich
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Introduction to Economics for Business