Japan, which is spending heavily for post-tsunami reconstruction, is growing quite fast, while Italy, which is imposing austerity measures, is shrinking almost equally fast.

There seems to be some kind of lesson here about macroeconomics, but I can’t quite put my finger on it

If austerity worked, the bars for the UK and Italy would be positive. It spending didn’t work, the bars for Japan would look like Italy’s bar.

(via Spending and Growth – NYTimes.com)