Given the scope of the fiscal problems, it could be like this for the next 10 or 20 years.
Or as Chris Varvares, president of Macroeconomic Advisers, put it, "We have reduced the scope of using fiscal policy to cushion the economy in the next downturn".
Italy won its battle to restrict the scope of the fiscal compact, which calls for making it easier to impose sanctions against countries that break European Union budget rules.
As leaders of the world's biggest economies settled in for meetings at a lakeside resort in Ontario, American and European officials played down talk of a growing rift between them on the scope and timing of fiscal belt-tightening.
With the private sector unwilling to spend and nervous investors clamouring for safe government bonds, there is little risk of crowding out private investment.Some countries have more scope for fiscal stimulus than others.
Deny, deflect, detonate Reprints Related items Bagehot: Deny, deflect, detonateSep 4th 2008 Britain's economy: How bad is it?Sep 4th 2008 The City of London: Defying augurySep 4th 2008That worry would limit the scope for fiscal stimulus too.
There is much greater scope for fiscal stimulus to boost growth, and much smaller scope for monetary stimulus.
The state comptroller, H. Carl McCall, who applauded Governor Pataki for recognizing the scope of Nassau's fiscal problems, raised doubts about the plan, saying in a statement that "the governor's rhetoric seems to say that the repairs can be accomplished easily, and this remains to be seen".
A sensible fiscal regime would allow scope for additional, discretionary loosening of fiscal policy.
The fiscal scope of the two-year proposal agreed between Senate Budget Committee chairman Patty Murray and House Budget Committee chairman Paul Ryan is modest.
