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If central banks had a higher target for inflation, that would allow for bigger cuts in real interest rates in a recession.
The higher rates required in normal times would create the space for bigger cuts during slumps.That argument is often bundled with another: that higher inflation greases the wheels of the economy.
[C1.] Union Would Accept Only Minor Benefit Cuts at G.M. A United Auto Workers leader said the union would accept only modest cuts in health benefits in response to General Motors' plea for bigger cuts.
Hence my sense that conservatives should at least consider banking the bipartisan entitlement cuts that are on the table today, assuming the price is right — to buy a little time for the American economy, to hedge their bets against whatever happens in the 2012 election, and to set a precedent for bigger cuts to come.
WASHINGTON — As Congress opens a politically charged exploration of ways to pare the deficit, President Obama is expected to seek hundreds of billions of dollars in savings in Medicare and Medicaid, delighting Republicans and dismaying many Democrats who fear that his proposals will become a starting point for bigger cuts in the popular health programs.
BLOOMBERG NEWS Goldman SachshSaidid to Plan Job Cuts | Goldman Sachs "will begin a fresh round of job cuts as early as this week, sources familiar with the matter said on Monday, with its equities-trading business bracing for bigger cuts than fixed-income trading," Reuters reports.
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The announcement comes as all arts organisations brace themselves for big cuts when George Osborne announces his spending review in November.
The tax deal may have upset Tea Party Republicans looking for big cuts in entitlement spending and liberals demanding even bigger tax increases on the wealthy.
There is not much room for big cuts to Medicare and Medicaid in the negotiations over the so-called fiscal cliff and deficit reduction.
However, in practice, the scheme has been riddled with so many loopholes that, so far, the potential for big cuts in emissions has been lost.
Mr Blair originally wanted to offer big cuts in Britain's rebate only in exchange for big cuts in the CAP logical enough, since the rebate arises mainly because Britain gets so few receipts under the CAP.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com