Nobel Laureate Paul Krugman has often lamented this as an undue faith in the '“confidence fairy" to spur growth. More importantly, studies have shown that the impact of a growth contraction on measures of sovereign risks is higher than the impact of debts and deficits on such risks. Hence, when fiscal consolidation leads to growth contractions they reduce rather than raise market confidence. See Cottarelli and Jaramillo (2012). Also, see Krugman (2012). Also see, Chowdhury and Islam (2012a).