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"This development raises the prospect that, over the next year, monetary policy will be trapped between the tightening needs of overheating countries and resistance to higher real rates from low-inflation ones," economists at Salomon Smith Barney said in a recent report.
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That said, the possibility of such shocks should always be a counsel for caution when a government embarks on fiscal tightening.Some say tightening need not hurt.
But in the 2002 fiscal year, which starts July 1, there was a fair share of belt tightening needed to balance the budget while also covering about $525 million in tax cuts that mayor wants, as well as the labor settlement.
Supervision needs tightening, and the law needs changing to protect supervisors from long court cases every time they close a sick bank.
Budget tightening is needed, but not this much, this fast or this way.
"Conversely, monetary tightening may need to be initiated earlier than currently envisaged if core inflation or wage growth in excess of productivity growth begins to rise sharply".
The model has morphed into one which can only respond to crises simply because the funding stream has continually been tightened and needs have risen.
In recent weeks, several heads of government have begun to muse, after the years of belt-tightening needed to qualify for the euro, about reducing their high unemployment by increased public spending.
Invest some time today in exploring which of these strings may be in need of tightening and which may need loosening.
The finale needs tightening, with far too many scene changes for an underwhelming special effect.
The U.N. imposed an arms embargo on Liberia in the early 1990's, but it needs tightening.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com