The problem with austerity as I see it is that it is a losing strategy if any other player doesn't adhere to it. Example - Economy A starts QE, Economy B sticks to austerity. Economy A gets super cheap money they have to invest somewhere, Economy B is short on money due to austerity. Economy A with the money out of thin air buys most of the industrial assets of Economy B. Economy B wants to change the course by rejecting austerity and starting QE. But the first mover advantage is gone, Economy A's stocks are already inflated so Economy B can't gain anything by trying to do the same as Economy A, buying Economy A's industrial assets, causing downfall of its trading currency.