Is Austerity the Road to Ruin? James Montier July 2010

found unexpectedly (the document itself is here). think about it, summer 2010 of the year!
no panic and hysteria, simple and to the point.

(How many commandments were eventually implemented? One or two?)

Ten Commandments for fiscal adjustment in developed economies:

Commandment I: You shall have a credible medium- term fiscal plan with a visible anchor (in terms of either an average pace of adjustment, or of a fiscal target to be achieved within four to five years).

Commandment II: You shall not front-load your fiscal adjustment, unless financing needs require it.

Commandment III: You shall target a long-term decline in the public debt-to-GDP ratio, not just its stabilization at post-crisis levels.

Commandment IV: You shall focus on fiscal consolidation tools that are conducive to strong potential growth.

Commandment V: You shall pass early pension and health care reforms as current trends are unsustainable.

Commandment VI: You shall be fair. To be sustainable over time, the fiscal adjustment should be equitable.

Commandment VII: You shall implement wide reforms to boost potential growth.

Commandment VIII: You shall strengthen your fiscal institutions.

Commandment IX: You shall properly coordinate monetary and fiscal policy.

Commandment X: You shall coordinate your policies with other countries