US Economics Weekly US spends an unhealthy amount on health care There is little prospect of getting the Federal deficit under control in the long-term unless spending on health care is reined in or, at the very least, not allowed to continue growing at a faster... 23rd May 2011 · 1 min read
China Economics Focus Is China serious about rebalancing? China’s current account surplus will soon rebound unless the government embraces significant policy reform. The Five-Year Plan signals that there is widespread agreement in principle on the need to... 20th May 2011 · 1 min read
Asia Economics Update New Zealand set for a prolonged fiscal tightening Despite 2011 being an election year, New Zealand’s government today announced a budget with few giveaways. The aim to move back into a surplus by 2014-15 will be tough to achieve, especially if... 19th May 2011 · 1 min read
UK Economics Update Bulk of fiscal squeeze yet to come The recent slowdown in the pace of recovery is probably due in part to the fiscal tightening measures that have already been put in place. But with the bulk of the government spending cuts yet to come... 12th May 2011 · 1 min read
Asia Economics Update Australia still targeting a quick return to budget surplus Despite recent natural disasters, Australia’s government stuck to its aim of moving back into a surplus by 2012-13 in today’s federal budget. The goal is likely to be achieved given the prospect of... 10th May 2011 · 1 min read
US Economics Weekly Treasury getting perilously close to debt ceiling In all likelihood, the Federal government will hit its debt ceiling at the start of next week, although the Treasury can use a number of accounting tricks to delay the day of reckoning, perhaps until... 9th May 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Apr.) Official public finances data for 2010 confirmed that while the core economies are making clear progress to rein in their budget deficits, the periphery’s fiscal problems are far from over. 26th April 2011 · 1 min read
UK Data Response Retail Sales & Public finances (Mar.) March’s retail sales figures were slightly more upbeat than the other recent news on consumer spending. The public finance figures were a bit better than expected too. But it is hard to be optimistic... 21st April 2011 · 1 min read
US Economics Update Hard to argue with negative outlook on US AAA credit rating Given the size of the US Federal deficit, which will be close to 10% of GDP this year, and the daunting medium-term fiscal challenges, it is hard to argue with S&P's decision to put a negative outlook... 18th April 2011 · 1 min read
Japan Economics Weekly Little room for manoeuvre in public finances The chances of an imminent fiscal crisis may be small, but public finances have limited room fo rmanoeuvre. Another shock to the economy or investor confidence could mark a tipping point in the... 18th April 2011 · 1 min read
Canada Economics Weekly Debate on corporate tax rates warms up The debate surrounding the merits of corporate tax cuts continued last week, with the Globe and Mail running a front page headline that claimed the reductions already put in place hadn't boosted... 11th April 2011 · 1 min read
US Economics Update Budget fight: Round 2 The possibility of a Federal government shutdown is back on the front pages, with concern growing that no agreement will be reached before the current continuing spending resolution expires this... 6th April 2011 · 1 min read
Canada Economics Weekly Fiscal stresses mean no big election giveaways Campaigning for the Federal election on May 2nd got well underway last week, with most of the major parties unveiling new economic policy initiatives. The bottom line is that the focus is still on... 4th April 2011 · 1 min read
Japan Economics Weekly Risk of fiscal crisis growing Some commentators have argued that Japan’s ability to sell assets or print money to service its government debt means it makes no sense to worry about a “fiscal crisis”. The chances that the Japanese... 4th April 2011 · 1 min read
Japan Economics Update How will reconstruction be financed? Japan’s economy will eventually recover from the Tohoku-Pacific Ocean earthquake as the initial disruption to activity is replaced by a surge in spending on reconstruction. However, the boost to... 29th March 2011 · 1 min read
Europe Economics Update Euro-zone Fiscal Monitor (Mar.) Public finances data for February revealed a familiar picture, with Spain leading the way with respect to its fiscal tightening plans while Greece continued to lag behind. 29th March 2011 · 1 min read
