ITEMS FOR YOUR CONSIDERATION
“For the United States, the growth impact of such spillovers is broadly offset by stronger underlying domestic demand dynamics in 2012. Nonetheless, activity slows from the pace reached during the second half of 2011, as higher risk aversion tightens financial conditions and fiscal policy turns more contractionary.
Importantly, not all countries should adjust in the same way, to the same extent, or at the same time, lest their efforts become self-defeating. Countries with relatively strong fiscal and external positions, for example, should not adjust to the same extent as countries lacking those strengths or facing market pressures. Through mutually consistent actions, policymakers can help anchor expectations and reestablish confidence.”
World Economic Outlook Update: Global Recovery Stalls, Downside Risks Intensify, International Monetary fund, January 2012.
Most economists say (and the record of job growth during 2011 shows) that the U.S. must have GDP growth over 3 percent for a long period of time to substantially reduce the unemployment rate and bring discouraged workers back into the labor force (which will raise incomes). Surely, the U.S. will not achieve the needed level of employment growth without working closely with other nations to implement a coordinated global policy approach to fixing the world economy and increasing global demand for workers.
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The World Economy’s Demolition Derby of Competing and Overlapping Economic Policy Making Entities, January 22, 2012