#fiscal stimulus

broken window parable has lasted because the mistake it identifies is permanent. People keep confusing motion with wealth. A shop window gets smashed. The glazier benefits. He is paid to replace it. Money changes hands. Work is created. Onlookers reassure themselves that the damage at least “helped somebody.” Bastiat’s point is that this is where bad economic reasoning begins. The shopkeeper must…

En los últimos meses, los mercados internacionales han sido testigos de un aumento significativo en los precios del petróleo, impulsado por tensiones geopolíticas en Medio Oriente y otros conflictos internacionales. Este fenómeno, aunque representa una oportunidad para incrementar los ingresos petroleros de México, también plantea desafíos importantes para la economía nacional, especialmente en…

This was the lowest level of fiscal deficit in any comparable period in relation to the respective BE since FY11. Amid a growing perception, partly caused by a view expressed by some senior government functionaries against another instalment of a large demand-side fiscal stimulus in the current fiscal, finance minister Nirmala Sitharaman late Sunday indicated that the government was indeed open…

Italy downgrades its economic growth forecasts yet again

Yesterday brought something familiar and something much less familiar in Italy. So ket us start with the latter. ROME (Reuters) – Italy has hiked its target for this year’s budget deficit to 11.8% of gross domestic product from an 8.8% projection made in January, a government source told Reuters. The new target is contained in the Treasury’s annual Economic and Financial Document (DEF) which…

Consumer Credit in the US both booms and falls…..

Last night brought something intriguing from the US economy so let us take a look at the state of play in its credit market. In February, consumer credit increased at a seasonally adjusted annual rate of 7.9 percent. Revolving credit increased at an annual rate of 10.1 percent, while nonrevolving credit increased at an annual rate of 7.3 percent. So we have a number that looks like it belongs to…