Browsing Tag

deficit

The Risks of Pro-Cyclical Policy

Pro-cyclical monetary and fiscal policies exacerbate the challenge that lies ahead. Although the world enjoys a synchronized expansion, the Great Financial Crisis may not be truly over until the downside of this business cycle is managed.

How to think about fiscal drag

By Warren Mosler Back in November my forecast for 2013 was 4%, which at the time was by far the highest around. The govt was spending more than its income by about 6% of GDP, which was about $900 billion if I recall correctly. But then it…
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