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IMF warning over stimulus policies

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Post by Jobless_in_Ma Tue Sep 20, 2011 11:58 am

http://www.ft.com/cms/s/0/7ba9fa64-e35b-11e0-8f47-00144feabdc0.html#axzz1YVLlBvBf
“If fiscal consolidation were suddenly stepped up further at the expense of the disposable income of people with a high marginal propensity to consume, these economies could be thrown back into stagnation,” the fund said.  “For example, if … payroll tax relief and help for the unemployed in the United States are not prolonged, US growth could be significantly lower”.
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