Germany and France Aim to Avert a ‘Lost Decade’
The economy ministers of France and Germany called on Thursday for urgent overhauls and a series of investments in both countries to help prevent them and the eurozone from falling into a stagnation trap.
There is a lot of discussion of how economic slack is fast disappearing, and I expect a lot of push on this view, given continued rapid growth in GDP as reported in today’s second release for 2014Q3. This view seems counter to (1) the CBO estimate of potential GDP and (2) the slow pace of inflation. My suggestion is that there remains a substantial amount of slack out there.
The Department of Revenue’s Wisconsin Economic Outlook, released last week, details a noticeable deterioration in forecasted economic performance, in just the past eight months.
Action is needed in the eurozone and Japan, according to the Treasury Secretary.
The deterioration in Kansas state finances not only continues unabated — it is seemingly accelerating.
Implications for the dollar’s trajectory