From today’s chapters 3 and 4 of the IMF World Economic Outlook, released today. From Chapter 4:
“…the results based on the small-scale regressions suggest that economies with larger current account deficits, rising inflation, and a deteriorating fiscal balance before a crisis experienced significantly larger output losses [from financial crises].
Excerpt from Figure 4.9 from IMF, World Economic Outlook, Sep. 2009
“[America] needs a combination of policies to reduce the deficit substantially so that its indebtedness to the rest of the world stops rising at some point. These policies include…
A concerted effort to reduce the federal budget deficit…”