And more on multipliers for European governments

Peterson Institute via Zero Hedge: This is the typical chart economists use to tell if a large aggregate of nations over some lengthy time period, can show a correlation between debt based spending, with a promise to save in the future, versus real growth.  Should consumers spend now, save later; or save now, spend later? This chart is for a period of two years, the medium term. Austerians believe consumers should save now,spend later, and they are winning. We assume businesses and firms will invest now and produce later under the Austerian scheme. Hence, Germany, for example, would be showing greater business investment relative to consumption than say, Spain.