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NO SOONER had the worst job losses in a generation been reported (on December 5th, a Friday), than Barack Obama stepped up his calls for an ambitious fiscal stimulus package, taking to the airwaves twice over the weekend to do it.
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Investors expect a more ambitious fiscal target, raising the planned primary budget surplus (before interest payments) from 3.75% of GDP to 4.5% or so.
His most ambitious fiscal proposal, a plan to sell and lease back the New Jersey Turnpike, generated an intense backlash, and was ultimately scuttled because it would have required an 800percenttollll increase.
S&P warned there are "rising risks" to Portugal's "ambitious fiscal consolidation objectives", and a growing change that it will fail to hits its bailout targets.
"Such external support could provide Spain with the breathing space to implement its ambitious fiscal and economic reforms," Fitch wrote in a note on Friday.
"They specifically say that a downgrade could be prompted by a change in the government's 'willingness and ability to implement its ambitious fiscal strategy'.
Despite these concerns, a number of EU countries not only have recently put in place ambitious fiscal consolidation plans, but have also at the same time carried out major labour market reforms.
To jolt Japan out of decades of anemic growth, Mr. Abe favors more ambitious fiscal and monetary stimulus.
The government is promising small tax cuts, but steering clear of ambitious fiscal reform as it tries to recover popularity before next year's election.
"Lower economic growth in turn will make the achievement of the ambitious fiscal targets even more challenging for Spain," Moody's wrote.
"At the current juncture, it is in particular the responsibility of the advanced economies, including Japan and the U.S., to follow through with ambitious fiscal consolidation over the medium term".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com