The United States in Balance Sheet Recession

The U.S. response to the balance sheet recession over the past few years has provided an example for the rest of the world. In particular, the decision by officials at the Fed and the White House to use the expression “fiscal cliff” to warn against premature fiscal consolidation kept the United Stat...

Full description

Saved in:
Bibliographic Details
Published inThe Escape from Balance Sheet Recession and the QE Trap pp. 121 - 152
Main Author Koo, Richard C
Format Book Chapter
LanguageEnglish
Published Singapore John Wiley & Sons, Incorporated 2014
John Wiley & Sons, Inc
Subjects
balance sheet recession
debt obligation
economy
financial institution
fiscal cliff
United States
Online AccessGet full text

Cover

More Information
Summary:The U.S. response to the balance sheet recession over the past few years has provided an example for the rest of the world. In particular, the decision by officials at the Fed and the White House to use the expression “fiscal cliff” to warn against premature fiscal consolidation kept the United States from making the mistake, unlike the Japanese in 1997 and the Europeans after 2010. Moreover, the strong U.S. economy has recently driven marked improvements in the fiscal deficit. In other words, by averting premature fiscal consolidation with warnings of a “fiscal cliff,” the United States was able to sustain the recovery's momentum, which is now paying handsome dividends in the form of smaller deficits.
ISBN:9781119028123
1119028124
DOI:10.1002/9781119198895.ch3