Comments on: China’s Stimulus, the IMF’s Forecast, and France’s G20 Agenda

By: The G20: A Viewer’s Guide « The Baseline Scenario

The G20: A Viewer’s Guide « The Baseline Scenario — Sat, 15 Nov 2008 02:25:52 +0000

[...] could be announced. China, Germany and now it seems the UK have put something on the table. We’re still waiting for the French – perhaps they are waiting for a dramatic moment. But this US administration seems to be backing [...]

By: RealTime Economic Issues Watch

RealTime Economic Issues Watch — Wed, 12 Nov 2008 21:53:42 +0000

[...] This article was adapted from a posting on Mr. Johnson’s blog, Baseline Scenario. [...]

By: J-P Dumas

J-P Dumas — Wed, 12 Nov 2008 19:24:31 +0000

“that France has the credibility needed to dominate the international economic policy agenda?”
The dream of French authorities is to dominate the international policy agenda, but do they have the credibility? France is a socialist country (GG public expenditure 54% of GDP, increase further the fiscal deficit… what a ‘bold’ policy, where is the credibility of officials who run every year a fiscal deficit (procyclical policy), all that to have +0.2% of growth in 2009! If RICARDO is right the fiscal effect of the deficit must be almost nil, but the future impact on (lower) growth through increase in the highest tax rate in OECD ctries is certain.

By: Pradeep

Pradeep — Mon, 10 Nov 2008 15:17:39 +0000

Is it possible that this Chinese stimulus package will crowd-out purchases of US Gov’t debt by the Chinese? And, if so, won’t this contribute to added pressure on the US by potentially raising interest rates and forcing the US to start saving more to fund this debt?

The whole Chinese stimulus thing seems a little rushed and, unlike the equity market interpretation, it’s making me more suspicious than comforted.