Arrangement of various world currencies including Chinese Yuan, US Dollar, Euro, British Pound, pictured in Warsaw, January 25, 2011. Reuters/Kacper Pempel
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
There won't be any press conferences, fireworks or tears to mark its passing, but the latest wave of austerity worldwide may well have had its day.Framing the shift, Edinburgh-based Standard Life Investments reckons the average country in the 34-nation Organisation for Economic Co-operation and Development will structurally loosen fiscal policy next year for the first time since 2010 .It's a big moment after the eye-watering tightening of the three years through 2013 when the average OECD member structurally squeezed fiscal policy by 1.3 points per annum.Others point to last month's U.S. government deal loosening strict budget caps through 2017, moves that allow an additional $80 billion in spending on military and domestic programs over two years. Some cite expected new fiscal stimuli from Beijing as it pursues growth targets from China's new five-year plan.At least seven of the 19 euro members are set to loosen budget policy next year even if European Commission forecasts show the aggregate budget deficit falling slightly.Public policy bodies such as the OECD now urge governments to re-examine their budget spending – echoing long-standing concerns among many liberal and left-leaning economists that austerity for its own sake was self-defeating over time.
FOLLOW THIS ARTICLE