Some Thoughts on US Fiscal Policy

Some Thoughts on US Fiscal Policy

19 April 2016, 23:01
Francis Dogbe
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The US presidential selection process is well underway, and yet there has been no coherent discussion of fiscal policy. In part, this is because it does not appear particularly urgent. The US deficit peaked in 2009 at 10.1% of GDP. Last year it stood at what for most OECD countries an enviable 2.6%. This year and next it is forecast by private sector economists to reach 2.9%. There are many who argue that monetary policy has been as accommodative as possible. With the expansion entering its seventh year, unemployment at 5%, and the Fed's preferred inflation measure (the core PCE deflator) at 1.7%, interest rates ... READ MORE
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