The fiscal multiplier at work in Europe

 Remember that the multiplier is essentially a feedback mechanism in the goods market and the flatter the expenditures curve, the larger the multiplier is.  This little piece from the Business Insider talks about the ramifications of a larger than expected multiplier on European GDP.  Sitting here in the US, it seems irrational to me that a country would choose austerity when already in recession.  (see the piece here)