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According a report by private equity firm, KKR, budgets cuts in Europe are not leading to growth but making matters worse:

“over the past twenty or so years, a one percent contraction in the fiscal deficit traditionally led to only about a 50 basis point contraction in GDP5. Today, by comparison, the multiplier in Europe is closer to 1.25-1.75x”

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Read more: http://www.businessinsider.com/europe-fiscal-austerity-multiplier-2013-1#ixzz2J1lZejVd

How Austerity Is Increasingly Crushing Europe [via Business Insider]

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