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But as the full extent of the banking and real estate bust became evident, it was clear that the government of Prime Minister Cowen, which has been in power since the onset of the crisis more than two years ago, had underestimated the cost of fiscal recovery.
When interest rates are stuck at zero [as they then were], the output cost of fiscal consolidation doubles...
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The costs of fiscal laxity were low.
The first, which applies primarily to the euro area, has to do with the distribution of the costs of fiscal stimulus and austerity.
First, it excludes the far larger impact of the recession on government revenue, as well as the costs of fiscal stimulus.
But the way policymakers achieve balance has profound generational implications too -- and the sequester would continue a pattern in which the costs of fiscal adjustment are excessively imposed on the young.
But he sees a self-fulfilling prophecy taking shape around public education — the same problem that many others see with Indiana's intent focus on the cost side of fiscal restraint.
The political cost of sacrificing fiscal independence has always stymied efforts to build features like burden-sharing arrangements between countries.
In the Caribbean, like many regions around the world, we are saddled with extraordinarily high unemployment, cost of living, fiscal deficits and debt servicing ratios.
A new report from Macroeconomic Advisers, prepared for the Peter G. Peterson Foundation, estimates the costs of the fiscal uncertainty of the last few years.
"If there is a war of subsidies all our peoples will lose from the costs of expanding fiscal deficits," said Foreign Minister Adalberto Rodriguez Giavarini.
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