Friday, July 2, 2010

The G20’s China Bet « The Baseline Scenario

(c) 2010 F. Bruce Abel

Wonkish but necessary to read.

The G20’s China Bet « The Baseline Scenario: "The G20’s China Bet
with 40 comments
By Simon Johnson
The G20 communiqué, released after the Toronto summit on Sunday, made it quite clear that most industrialized countries now have budget deficit reduction fever (see this version, with line-by-line comments by me, Marc Chandler and Arvind Subramanian). The US resisted the pressure to cut government spending and/or raise taxes in a precipitate manner, but the sense of the meeting was clear – cut now to some extent and cut more tomorrow."