BoE paper finds impatience increases austerity costs

Bank of England building in London

A discussion paper published by the Bank of England on January 25 examines the relationship between household time preference and the fiscal multiplier, to determine the appropriate choice of austerity measures.

Authors Gilberto Marcheggiano and David Miles use survey data from around 6,000 individuals in 45 countries worldwide, finding a "a large and statistically significant" relationship between time preference and the fiscal multiplier. "The magnitude of the impact of time preferences on the

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