This doesn\’t look good

That the International Monetary Fund must prepare itself to help co-ordinate the so-called \”exit strategy\” from the stimulus, ensuring that in future years countries around the world start to raise interest rates and taxes in lock-step.

What if, for example Britain, decides that higher taxes is not the way to go? That perhaps current or even lower tax rates in order to encourage growth are the right way to go?

Imagine even that economies boom and bust out of step with each other, so that even a pure Keynesian would say that the appropriate direction of taxes, up or down, for an individual economy was different from the general trend?

One size does not, after all, fit all.

2 comments on “This doesn\’t look good

  1. Surely it is better on the whole, if the major economies of the world do not meet boom and bust cycles in phase with one another?

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