I would have gone through (what I consider) the trouble to post a pop out link to this article, but the Financial Times doesn't share well, so you'll have to go there and register.
Essentially the article, written by European Central Bank President Jean Claude Trichet, says the tightening government spending now will preserve the current climate of steady recovery. He sights public confidence as a reason to curb spending and levy reforms "to promote long-term growth." Furthermore, he contends, governments must protect their capacity to intervene in severe economic crises - some of which needn't spring from irresponsible wheeling and dealing.
Notably, he also claims "central banks [around the world] have demonstrated a remarkable capacity to analyse unprecedented situations and take appropriate decisions[sic]." I dying to know what you think of his assertion, and why.
Find the full article by searching "Stimulate no more - it is now time for all to tighten" at www.ft.com
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