Readings-Topics for Article Review
Intermediate Macroeconomics ECOS2002
Semester 2, 2013
You must choose one of the following four readings to write an article review for the assignment. Your review should focus on the topic which the article is primarily concerned with. Remember the word limit for the review (not counting bibliography) is 800 words so you need to be concise and focus on what you consider to be most important. Harvard style referencing and always reference if you utilise other sources.
Article Review
The purpose of an article review is to provide a summary and evaluation of a piece of 
writing. When a lecturer reads an article review written by a student, they want to see 
evidence that the student has not only understood the topic of the article, but is able to 
evaluate the article in relation to their own knowledge of the topic and other relevant 
knowledge in the field.
ARTICLE:
The Debate on Expansionary Fiscal Consolidation: How Robust is the Evidence?
Headnote
Abstract
This paper critically examines the key empirical evidence used to support the fiscal consolidation argument, complemented by a brief assessment of the limitations of the analytical foundation of the growth promoting benefits of the fiscal consolidation thesis. It also reviews the evidence on the debt-growth relationship at some length. It finds that the negative relationship between debt and GDP growth is influenced by outliers or exceptionally high debt-GDP ratios. It also points out that the composition of public debt matters. Additionally, the debt-GDP relationship appears to be non-linear – positive first and turning to negative, but there is considerable variation in the estimated turning or ‘tipping’ point, which is not helpful as a policy guide. Historical evidence does not lend support to the concerns that the current situation is likely to cause rapid upward spiraling of public indebtedness. Finally, the argument that fiscal consolidation is possible…