And the Latvian experience makes a strong political case for taking into account adjustment fatigue. While the large initial budget cuts went through relatively easily, taking much smaller steps proved much more difficult in the 2011 budget. The political argument for frontloading thus strikes me as fairly strong.
–Olivier Blanchard, Lessons from Latvia, VOX.eu.org, 15 Jun 2012.
Europe is tired. Europe is tired from a wide set of half-steps and mis-steps. Some Americans are just plain worn out by the opera of it all. (No yellow card! Would you please stop faking your hurt, get back in the game and carry on!)
There is a dearth of “carry on.”
Professor Blanchard, recently of MIT, presently of the IMF, writes a short and concise jewel on the summoning of Rigaian courage.
Latvia, and Ireland, found an “acceptance of pain.”
This will, now, be more difficult for Europe. It’s too late for frontloading. All need to backload, fast. And, it will be ever more difficult as Europe has adjustment fatigue. Discuss.