![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiuKXw6EK8zVCuHWEhcTKkr11-Trei2MfxNwW8X1FWhLWfL92pHaKLmgrmzid6Ovfc-17-OlXxnxrjIPQcxNKmavmLDFUQe9SFD8_Ov4DX1Ea6ouDIo2f42RBU05MbEGlbH2Ld_SYYvRHt8/s400/Screen+Shot+2012-04-30+at+1.29.01+PM.png)
It is remarkable how the Euro area and the US display a strong coordinated contraction in fiscal policy starting in the first quarter of 2009 that accelerates during 2010 and 2011. This has come at a time when advanced economies (and the world) were starting a recovery from a very deep recession. No surprise that the recovery is not going as well as some thought and some countries are going back into recession.
Antonio Fatás