Tag Archives: fiscal policy

Merk Investments has ranked the attractiveness of the currencies of each G10 country based on the monetary and fiscal policies of each country and the strength of each country's economy to come up with what they call the Merk Currency Score™. This Score should prove invaluable in supporting investment decision-making across countries and regions. Go here to see where your country ranks. Words: 367

Federal fiscal policy is entering uncharted territory. We now expect fiscal policy to boost growth by 0.7pp in 2018 and 0.6pp in 2019 on a Q4/Q4 basis, however, we anticipate that the growth effects will fade later in 2019 and turn slightly negative by 2020.

It is understandable why there is such a major divide between Republicans and Democrats in America when one examines their diametrically opposed, and seemingly irreconcilable, Keynesian and Austrian economic views. This article explains the different approaches to fiscal policy for each party and why he thinks one approach is better than the other based on research on the subject.

...Fiscal policy, both in the U.S. and in Europe, has already been a drag on economic growth, and it’s extremely likely to continue to be one as politicians begin addressing concerns about long-term debt burdens. The debate about the fiscal cliff deal might revolve around the preferred paths to reducing the nation's long-term debt, but it also will determine just how much fiscal policy will limit growth over the coming months and years. What’s really at stake, in the near term at least, is the answer to two important and interrelated questions: How dysfunctional is our political leadership and how bad is our economy going to be next year? Words: 610