The Great False Choice, Stimulus or Austerity
Blanchard & Cottarelli, FT
The debate on the need for further fiscal stimulus or quicker retrenchment has become too ideological, and too extreme. Underneath it, however, there is more agreement on the basics than may be apparent at first blush. Indeed, despite the warring comments that have appeared in these pages, there is actually no necessary conflict between restoring fiscal sustainability and maintaining support for the recovery.Despite rising fears of a double-dip recession in both the US and UK in recent days, the basic facts remain unchallenged. Government debt in advanced Group of 20 countries will ...
http://www.realclearpolitics.com/2010/08/12/the_great_false_choice_stimulus_or_austerity_239514.html
