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Yes, the arithmetic suggests that cutting spending now will do very little to improve the long-run fiscal prospect.
Indeed, the long-run fiscal prospect now looks far worse than before -- a point not missed by bond markets, which have driven up long-run interest rates sharply since the attack.
The bottom line, fleshed out with a lot of evidence, is one that others — including me and Christy Romer — have been arguing for a while: expansionary fiscal policy under these conditions doesn't just aid the economy in the short run, it may well even improve the long-run fiscal prospect.
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And even if markets were worried about U.S. fiscal prospects, spending cuts in the face of a depressed economy would do little to improve those prospects.
As New York's most singularly theatrical public space, Lincoln Center offers a continuously entertaining public spectacle in spite of changing demographics and uncertain fiscal prospects.
If investors lose confidence in a country's fiscal prospects, their fear can become self-fulfilling by pushing up bond yields to unsustainable levels.
Britain's fiscal prospects look worse than Spain's, but Britain can borrow at just a bit over 2 percent, while Spain is paying almost 6 percent.
If you look at fiscal prospects over, say, the next 20 years, they are indeed deeply worrying, largely because of rising health-care costs.
The first condition for sensible analysis of the fiscal prospects is that the current optimism must be severely curbed.Where do you go from there?
And by giving us a chance, finally, to rein in the ever-growing spending of Medicare, it would greatly improve our long-run fiscal prospects.
"You even had the Fed chairman out there supporting it, because we were looking at a very different picture for the fiscal prospects.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com