As a result, early in the recovery governments began to withdraw fiscal stimulus, and, in most cases, fiscal policy became a net drag on economic growth. This outcome was most evident in the euro-area periphery, where skyrocketing bond yields and deepening concerns about default left governments with little choice about whether to rein in stimulus.
As a result, corporate profits have worsened, and employment and income conditions have deteriorated evidently, as seen recently in the rapid rise of the unemployment rate.