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All of which is why analysts see little chance of any bold fiscal moves from Mr. Noda's new government.
The rise of the Tea Party has taken fiscal policy off the table as a potential countercyclical instrument; the next fiscal moves will be contractionary (probably more spending cuts), whether jobs start to come back or not.
He settled into trench warfare, waiting for House Republicans to make their fiscal moves and betting they would get so much criticism that ultimately they would compromise — much like what happened between President Bill Clinton and Republicans in the 1990s.
Nevertheless, Mr. De la Rua and his aides predict that their early fiscal moves will stimulate bond and stock market rallies and produce strong growth in the second half of this year.
The activist investor is hedging his portfolio while pounding the table for U.S. fiscal moves, like a tax solution that would entice U.S. corporations to repatriate offshore cash.
It was also consistent with parallel countercyclical fiscal moves in other countries.
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The temporary scheduling hiatus - and it proved to be just that, a temporary measure - was a prudent fiscal move while I reviewed the agency's administrative budget and awaited confirmation of additional funds requested from a contingency fund.
I am educated and know what to do, but imagine the plight of a vegetable seller or milkman?" Chiara Rossi, an Italian national who has been in India for six weeks, said the fiscal move had left her at a loss as to what to do with her foreign exchange.
Other analysts said the day's modest rally foreshadowed better days as the economy began to digest fiscal policy moves and the Fed's monetary policy took effect.
The setback is an ominous sign for an economy already facing a severe test in 2011, as the government's fiscal retrenchment moves from plans in Whitehall to reality on the ground.
But there is more doubt whether Washington can quickly agree on fiscal policy moves — that is, raising spending or cutting taxes — in an election year in which the White House and Congress are controlled by different parties.
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