Germany's Fiscal Follies

By Harold James
20 July 2009 @ 04:57 pm EDT

All over the world, public-sector deficits are exploding. Governments face massive costs rescuing banks and businesses hit by the financial and economic crisis. There is a universal consensus that Keynesian stimulus is needed. At the same time, policymakers are looking more and more nervously for an "exit strategy." They know that they cannot run deficits forever, but they do not want to say when the painful exit should begin.

Copyright Project Syndicate, Reprinted with permission.

E-Newsletters

We value your privacy. Your email address will not be shared.