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So now is not the time for fiscal austerity.
Asked if Spain needed more time for fiscal adjustment, Ms. Lagarde replied that it did.
"At a time of mass unemployment, it's clear, the economics textbooks tell us, that this is not the right time for fiscal retrenchment".
Such a slowdown would be "bad news" for the government, he said, "now that the time for fiscal consolidation has come".
The economic stimulus will be useful if the money is invested in America's infrastructure, domestic energy production and research and development Now is the time for fiscal conservatism.
The mood in Jackson Hole suggested that any action will be modest and incremental.Many central bankers, including Ben Bernanke, the Fed's chairman, think it is time for fiscal policy to do more.
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