Late last week I was scrolling through a story about the IMF’s latest comments on the US economic outlook, short-term and more medium-term. As the story reminded readers
The Trump administration says its economic platform — including cutting corporate and income taxes, boosting infrastructure spending and reducing regulations — will push growth up to a sustained rate of 3-4 per cent a year and cut unhealthy government debt levels.
At present, the Federal Reserve’s FOMC members collectively think potential GDP growth rates in the US are a touch under 2 per cent per annum.
The IMF has just finished its Article IV “mission” to the US (the US Treasury and the Fed being each a few blocks’ walk from the IMF), and released the team’s Concluding Remarks. The Fund is, understandably, (more than) a bit sceptical about prospects for such an acceleration in the rate of growth of…
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