Larry's Blog
Gambling on Fiscal Restraint
June 22, 2010
One of the greatest uncertainties faced by policymakers concerns whether economies that are now recovering can tolerate fiscal restraint. Expert opinion is divided on this question, and historical precedents provide conflicting answers. Fiscal cutbacks in 1937 and a VAT increase of two percentage points to 5% in April 1997 respectively pushed the U.S. and Japanese […] More
New Overnight Developments Abroad - Daily Update
Cynicism Over Euro Area Debt and Beijing’s Yuan Policy Sends Stocks Lower
June 22, 2010
Equiites fell by 1.2% in Japan and Australia, 0.7% in India, and 0.5% in South Korea, Singapore, Sri Lanka and New Zealand. Downward pressure intensified in Europe where stocks so far show losses of 1.8% in Madrid, 1.6% in Paris and and London, and 1.0% in Frankfurt. U.S. futures are lower, too. The yuan trimmed […] More
