The peculiar first semester of 2012

Research output: Working paper

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Portugal was subjected in 2011 to one of the most stringent austerity packages
implemented during the crisis, a package known as the troika program.
The interpretation of the effects of this program gave space to a vivid confrontation
between two opposing views. The Keynesian view stressed the contractionary
effect on the economy and is well documented in the data that
show a deterioration in the basic macro indicators. We believe, however, that
the austerity package might have simultaneously provided an important and
less often acknowledged ingredient to the recovery of the economy, namely an
increase in the investors’ confidence as expressed by a sustained decline in the
yields in financial markets. This German view seems, therefore and to some
extent, also present in the portuguese macro adjustment.
Original languageEnglish
Number of pages10
Publication statusPublished - Jan 2018

Publication series

NameFEUNL Working Paper Series
PublisherNova School of Business and Economics


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