The Search For Austerity Success Stories

Many western nations have tried to grow by their economies by using contractionary fiscal policies. They support their actions by arguing that this will increase business confidence and foster growth.  Those who advocate expansionary contraction have cited several countries which have been successful after imposing austerity measures.  Unfortunately, they turn out to be poor examples.  Unemployment remains high in each of these countries.  Iceland has taken a different approach to its problems and it has been more successful in turning around a badly damaged economy.