Austerity not the answer - Nobel economics prize winner

This is from back in 2011 when Greece was going under. An excellent interview discussing the dangers of Greek austerity should it continue. Clearly it wasn't the right thing to do to let it, and Greece had to have money to keep it's economy going.

Something that I've not read much of, what effect would pulling $80billion out of the Australian economy have? My assumption would be that it would grind to a halt.