U.K. and U.S. need to do more about debt: IMF - Macleans.ca
 

U.K. and U.S. need to do more about debt: IMF

Government debt hasn’t been “coming down in good times”


 

The International Monetary Fund (IMF) has warned that, despite progress in countries like Britain, governments in advanced economies need to do more to stave off debt. The report expresses concern that debt-to-GDP levels will be nearly double their 2007 levels by 2015 in both the U.S. and U.K. “Fiscal policy will need to react more strongly to debt than past behaviour…” said the IMF. “In the last three and a half decades, public debt has been the shock absorber in advanced economies—going up in good times and not coming down in good times.” The report called for growth-friendly structural reforms, stronger fiscal institutions and spending and revenue reforms. The report found that Greece, Italy, Japan and Portugal are in the worst position, with the U.K., U.S., Ireland, and Iceland also requiring restraint. By contrast, Canada’s debt-to-GDP ratio is expected to fall by 2015. Although the fiscal situation is challenging, the IMF says that they have observed “some market overreaction,” to the risk of debt defaults in advanced economies.

The Telegraph


 
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U.K. and U.S. need to do more about debt: IMF

  1. The UK and now the US have elected radical leftists into government, they will not stop spending other people's money until they can't borrow it anymore, that's when the good times that the US and UK are currently enjoying will end abruptly. The radical leftists in media will find someone else to blame even though socialism has failed everywhere else too.

    • David Cameron will be very surprised to hear himself described as a radical leftist.

    • Yeah, and that leftist socialist in the U.S. had a record debt on his very first day on the job, the commie.

      • So the solution is to blow it up almost exponentially? Hello?

        • Certainly not, as you know, MYL. I was just responding to the comment, "and now the US has elected radical leftists into government" as if that was the start of the problem. I mean, where was all this howling when they hit the first trillion or whatever it is?

          • I was howling.

          • Yes, yes you were. But you could have used some help from Philanthropist.

          • And your help, and, well, the help from anyone who professes the ability to count. Apparently, such help was too much to ask for.

          • Hey! I've been howling, too.

  2. “Fiscal policy will need to react more strongly to debt than past behaviour…” said the IMF.

    They left out present and likely-future behaviour.

  3. public debt has been the shock absorber in advanced economies—going up in good times and not coming down in good times.

    That's not a shock absorber. That is a bubble.