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Asymmetric adjustment between debtor and creditor economies has also undermined growth.
The starting-point in 2009 for both debt and the deficit turned out to be worse than realised; tax revenues have proved disappointing as austerity measures have undermined growth.
The Chinese authorities' focus has increasingly shifted from fighting inflation to bolstering growth, especially as Europe, a key destination for Chinese-made goods, is mired in a debt crisis that has badly undermined growth prospects there.
They have stuck to that prescription even though austerity has undermined growth and increased unemployment in Greece, Spain, Portugal and now Italy, betting that people in those countries will swallow the harsh medicine because their only alternative is to default and possibly leave the euro zone altogether.
However, Japan increased taxes and ran an excessively tight monetary policy, which undermined growth.
This graph from Goldman Sachs tells the story of how conservative budget cutting has undermined growth from mid-2010 through 2014. mid-2010 through 2014
Similar(53)
Without it, you undermine growth".
Or does high debt undermine growth?
That in turn hammered American exporters, undermining growth here.
"Overregulation" is their top worry – government policies that interfere in business and undermine growth prospects.
There is concern that government cuts may also be undermining growth and exports.
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