But Keynesianism involved continued fiscal expansion, with no offsetting monetary contraction.

Forecasters assumed that monetary expansion would provide an effective antidote to fiscal contraction.

In fact, it was largely a result of massive fiscal stimulus and credit expansion.

LOS ANGELES The debate over fiscal expansion versus consolidation continues to divide the developed world.

When the crash came in 2008, massive fiscal and monetary expansion prevented US consumption from collapsing.

Continued fiscal expansion is certainly not the answer, as it ultimately damages both private spending and business investment.

It is all too easy to find examples of countries that subsequently suffered badly because of sustained fiscal expansion.

The outcome of early November s US mid term elections has effectively denied the Obama administration the option of fiscal expansion.

But, following monetary easing and fiscal expansion, it is Abenomics third arrow that will prove most important and most politically challenging.

Although fiscal expansion may have played a role in this success, central bank intervention was the most important component by far.

Coordinated fiscal expansion ( 5 trillion) by the world s leading governments arrested the downward slide, but failed to produce a healthy rebound.

The left calls for an expansion of social protection the right says that doing so would undermine economic growth and widen fiscal deficits.

So long as this trend continues, only high and continuing doses of fiscal and monetary expansion will be able to sustain domestic demand.

Some of the late 1970 s correction did follow from renewed intense US pressure for fiscal and monetary expansion, but that expansion caused inflationary pressure, which the Japanese and Germans then predictably blamed on the US.

In this context, attention was drawn to the need for closer attention to public investment, fiscal reform, public enterprises, export expansion and public administration.

European Expansion or Putin Expansion?

According to the governmental Bureau of Economic Research, the Territory is in a good position to experience a more balanced expansion in fiscal year 2005, given the continued expansion of the United States economy and planned and ongoing capital investment projects.

As I have argued before, the endgame to the financial bailouts and fiscal expansion will almost certainly mean higher interest rates, higher taxes, and, quite possibly, inflation.

But continued growth increases demand for oil, sending prices even higher. The alternative to monetary and fiscal expansion is recession, at which point oil prices would stop rising.

Moreover, roughly 40 of the increase in bank credit in 2009 accommodated the fiscal expansion, as projects were started prior to the budget allocations needed to finance them.

Mission expansion

Mission expansion

Expansion algorithm

Expansion ROM

Expansion Filter

(last expansion

Fiscal expansion is always risky, as it adds to debt and raises dangers later. But, given where we are, the benefits exceed the costs in countries with sustainable debt.

It was important for Governments to be more pragmatic and to devote closer attention to public investment, fiscal reform, public enterprises, export expansion and public administration. (Mr. Sharaf, Jordan)

Little wonder, then, that the Commission has issued a warning that crisis related fiscal expansion and the aging population raise questions about the sustainability of public finances in the EU.

Fiscal Follies

What's fiscal ?

Meanwhile, the state lurches from fiscal tragedy to fiscal farce.

Increase expansion level

Decrease expansion level

Protected Areas (expansion)

Protected areas (expansion)

To my mind, using Germany s balance sheet to help its neighbors directly is far more likely to work than is the presumed trickle down effect of a German led fiscal expansion.

Both men are likely to support the prevailing global double standard, which allows rich countries to use fiscal expansion in the face of recession, while forcing poor countries into greater austerity.

Measured over a five year period (2007 2012), the US has thus not done any better than the eurozone, although it has relied on a much larger dose of fiscal expansion.

Fiscal consolidation was not, however, the result of formal fiscal rules.

They see lingering post financial crisis unemployment as a compelling justification for much more aggressive fiscal expansion, even in countries already running massive deficits, such as the US and the United Kingdom.

Only by exerting a harder budget constraint on the state sector, limiting fiscal expansion, and reducing dependence on government led investment can China s excessive currency issuance be addressed in the long term.

Europe s Fiscal Wormhole

America s Fiscal Isolationism

Fiscal Closing Time?