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German Finance Minister Confirms What We Have Been Saying
December 23, 2008 in Commentary
The Wall Street Journal’s Real Time Economics/Secondary Sources today juxtaposes:
1. Peer Steinbruck, the German Minister of Finance, saying that Germany will not engage in “extensive debt financed-spending or tax-reduction programs.”
2. My posting, from yesterday, which makes the point that a big fiscal stimulus in the US strengthens the incentive for our major trading partners to free ride, i.e., not to engage in their own extensive debt financed-spending or tax-reduction programs.
Looks like we are still on at least this part of our baseline.
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