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To encourage this borrowing, and spending, interest rates controlled by the Fed would remain near zero, the policy makers said.
Though the Japanese government tried to stimulate the economy using the usual tools -- deficit spending, interest rate cuts -- it was never enough.
Although the British government controls Scotland's macroeconomic policy, including central government spending, interest rates, and monetary matters, the Scottish Parliament has power over local economic development, education, and training.
Stephen Kotler, a director of rentals for Prudential Douglas Elliman, said that many developers of stalled projects had avoided foreclosure only because they had been able to keep current on their construction loans by spending "interest reserves" negotiated as part of their initial loan packages.
The forecasters predicted that if the tax cuts were not offset within a few years by reductions in government spending, interest rates would rise, private investment would be crowded out, and the economy would actually be worse than if there had been no tax changes.
Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East.
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In America, we expected slumping house prices and a battle to resist recession through government spending, interest-rate cuts and surging exports (indeed, growth held up for longer than many expected).
Brown watcher Tim Cavanaugh of Reason says that any hope that Brown would actually take on the spending interests, many of them public employee unions that helped him win office again, ended with his sweetheart contract for the prison guards union.
The second-biggest-spending interest group in the state, Common Cause said, is the state prison guard union, the California Correctional Peace Officers Association.
And in recent years, California's Indian tribes have become the biggest-spending interest group in the state, pouring about $114 million into campaigns since 1998.
WASHINGTON--The U.S. campaign finance system is so heavily influenced by big-spending interest groups and wealthy individuals that it will take "huge scandals" to change it - and those scandals are looming, Senator John McCain said Tuesday.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com