Tuesday, March 27, 2012

Bang for Euro

Chart of the day, via True Economics:

I reckon both the US and EU 'imbalances' have each worsened in the past few years - and neither is sustainable (but equally difficult to reverse for similar political reasons).

As an added bonus, here is the Understatement of the Day, via the OECD:
However, while fiscal consolidation can contribute to enhancing confidence, there is a risk that large fiscal consolidation and, if this were to occur, excessive bank deleveraging hampering lending into the real economy may have a negative short-term effect on demand before the positive impact of healthier public finances and reforms to boost growth materialises.
Nevertheless, there's a handy table of initiatives each country could undertake to get back to a growth path: with Ireland unique in having opportunities to improve the quality/provision of infrastructure.

Sure anyway the Household Charge will sort that out...

1 comment:

  1. The crunch on capital spending, in favour of current spending (basically, the Croke Park Agreement), is the most unforgivable of the decisions taken by the present government. There's never been a better time to ramp-up infrastructure development with all the spin-off effects that would have in the wider economy, but the politicians have run to the arms of the vested interests once again. No doubt the return of social partnership is just around the corner!


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