This book provides an economic analysis of the effects of austerity policies. It is intended to be comprehensible to advanced undergraduates in UK universities. Hopefully it will be comprehensible and relevant to others too. Its aim is to provide an assessment of what is currently known about austerity programmes, in the light of the considerable amount of literature that has appeared on the topic, particularly since the Great Financial Crisis (2007/08). Austerity has, of course, been a controversial focus of interest, both amongst economists and in the political arena. It is fair to say we are nowhere near consensus on the subject in the profession, and there are several unresolved issues. Hopefully, this book will constitute a modest step towards a better understanding of austerity policies. It should be stressed that austerity is not an easy topic, and some of the arguments are quite complex and subtle. However reaching a better understanding of austerity and its ramifications is vital, given the huge costs that austerity policies have imposed on many poor and vulnerable people in many countries, and the likelihood that further such policies may be implemented in the future. Proponents of austerity policies may argue that there are no viable alternatives to such policies, or that the policies suggested are less painful than the alternatives. Whether or not this is the case, it does seem necessary to analyse such policies carefully and implement them only if it is indeed the case that they are the best options available.

The final draft of the book had almost been finished in mid-March 2020 when it became clear that the emerging Covid-19 pandemic was going to be an event of massive importance for the world economy and, indeed, for all aspects of our lives. Accordingly, I decided to review the draft carefully, and take into account the implications of the pandemic for the message of the book. However, at the time of writing (the middle of May) the pandemic is far from over and it will be some time before we are able to come up with a definitive account of the multifold economic consequences of the crisis.

I have given seminars related to the subject of this book to a number of audiences, including presentations to the Birmingham Economics Department, the University of Manchester, the University of Hull and the University of Cambridge Marshall Society.