In Search Of A "Robust" Defense Of Austerity In The UK

The Cameron administration is defending its decision to implement austerity by labeling its arguments as "robust".  This inspired one of Britain's leading economists to have some fun with  Cameron's overuse of the  robustness defense.  He analyzes the robustness defense and gives it a failing grade.  Paul Krugman has coined a couple of new concepts that have become part of the debate over austerity as well.  He frequently refers to zombie ideas.  They are ideas that never die despite the evidence against them.  He has also introduced the notion of the confidence fairy into the lexicon of economics.  The confidence fairy is supposed to respond to austerity measures by stimulating the economy.  We are still awaiting the appearance of the confidence fairy.  Economists in Britain have made a good case for introducing the robustness defense into the macro hall of infamy.