Friday 3 August 2012

Light at the end of the tunnel?

Now that the ECB have finally said they will support government deficit spending (by buying sovereign debt) and eurozone politicians, including Germany's, seem united in support of this, it seems meltdown is likely to be avoided. However, unless there is a massive fiscal stimulus of the sort seen during World War II the best outcome can hope for is a prolonged period of stagnation, as in Japan.

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