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Alternatively, if recent fiscal agreements unravel, credit could tumble by 4% or more, touching off a deeper euro-zone recession.
As the governor highlighted, successful currency unions need strong fiscal agreements and a banking union, with common supervisory standards and resolution mechanisms.
The declaration by Prime Minister R.L. Borden against entangling fiscal agreements applies to Great Britain as well as to the United States, as the Conservative party is opposed to any increase of the tariff preference accorded to British products.
Market forces and the constraints of European fiscal agreements are imposing the "wrong policy mix," he said, pushing several countries to try to cut their deficit spending at a time when it is needed most.
Unable to devalue their currencies to help regain industrial competitiveness, and impelled by European Union fiscal agreements to meet certain budget targets, they are facing years of belt-tightening just when their economies could use a lift from additional spending.
Unable to devalue their currencies to help regain industrial competitiveness, and impelled by E.U. fiscal agreements to meet certain budget targets, they are facing years of belt-tightening just when their economies could use a lift from additional spending.
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The fiscal agreement last week made tax cuts permanent for most households and put off big spending cuts.
Much of the advice came down to two themes: the world won't end, and politicians will eventually come up with a fiscal agreement.
The Social Democratic Party in Germany, the main opposition party whose support is needed to ratify the fiscal agreement, has taken a similar line.
With the House of Representatives approval of a fiscal agreement late Tuesday, investors were expecting a rally in the markets to start the New Year.
Adding to the pressure on the House, the fiscal agreement was reached by Senator Mitch McConnell of Kentucky, the Senate Republican leader, and had deep Republican support in the Senate, isolating the House Republicans in their opposition.
Related(20)
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economic agreements
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fiscal treaties
fiscal contracts
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taxation agreements
finance agreements
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taxes agreements
financing agreements
fiscal rules
fiscal targets
fiscal accounts
fiscal cliffs
fiscal policies
fiscal consequences
fiscal conservatives
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