The Economics of the Fiscal Cliff
As
2013 gets closer, the calls get louder to reverse earlier decisions by
the US government and Congress that would lead to public spending cuts
and higher tax rates beginning next year. The United States is moving
towards a “fiscal cliff” we are told which would bring down the American
economy because of the massive “extraction” of funds. What is behind
these claims? What are the determinants of public debt, the essentials
of debt management and where is the economy headed?
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