The deterioration in US net exports already trimmed about 0.8 percentage points from real GDP growth in the first quarter of 2016 (largely at the expense of manufacturing). Indeed, the US current-account deficit is widening once again just as Germany’s current-account surplus is expected to hit a high of about 8.5% of GDP this year (about three times China’s ratio).
comments:
Edwin Zamora
Nobody is seeing that the easy money is the only action than de Central Banks can take in this moment. The global economy is facing a long term slowdown. The Friedman answer to this situation was precisely easy money. But the situación has been proving that the Central Bank intervention is not enough. The other actor, than is not yet participating in the game, is the government through the invesment in public infraestructure, innovation, etc. The public intervention during the Great Depressión was the only way to get out of that... READ MORE
bruce birkett
I would suggest that Laffer is largely right about what needs to be done and that the tax increases in 1936 hold huge blame.
Living in part of Europe, I see clearly how taxes are bleeding the economy from having any possible type of real recovery. Low cost money means nothing if taxes siphon away all returns - both to capital and labor.
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