Argentina has fairly high inflation. Amost no one trusts the official number (11%) and sober serious people are Argentine inflation truthers estimating the rate as about 30%. People with normal dislike of inflation might think ARgentina could use a reduction of aggregate demand. Do fiscal policy skeptics who think Argentina would benefit from lower aggregate demand think that a temporary reduction in Argentine public spending would cause reduced aggregate demand ?
The point of asking oneself about Argentina is that it reverses the relationship between disliking government spending and doubting the effects of fiscal policy on aggregate demand.
If someone who considers himself a fiscal stimulus skeptic realizes that he thinks that austerity is a good anti inflation tool, then he has a puzzle to solve.
I also ask those who believe in expansionary austerity if they think that Argentina should cut aggregate demand and inflationry pressure by raising public spending. If the problem is the over exuberant confidence fairy, then policy should be designed to damage confidence.
update: as usual, I didn't expect anyone to link here. Given the traffic, I have updated two ways. First I have added links to the stimulus skepticism I have in mind. Note the claims to which I link are not qualified by any assertions about monetary policy. Also I added paragraph breaks.