All posts tagged IMF

Spoils of Victory

Whether President Obama or Governor Romney win the election net week, one thing is pretty certain ( though no really wants to admit it), whoever wins will preside over an economic boom in the US. Fareed Zakaria makes a compelling argument in his latest article in the Washington Post. According to the most recent International Monetary Fund’s World Economic Outlook;

when looking out over the next four years — the next presidential term — the IMF projects that the United States will be the strongest of the world’s rich economies. U.S. growth is forecast to average 3 percent, much stronger than that of Germany or France (1.2 percent) or even Canada (2.3 percent). Increasingly, the evidence suggests that the United States has come out of the financial crisis of 2008 in better shape than its peers — because of the actions of its government.

Despite Mitt Romney’s argument to the contrary, or that we could be doing “better” than  we are now, other leading economists have echoed the positive trends that are being illustrate by the economy. Read more…

Competing Models

Nicholas Kristoff, of the New York Times, makes a strong argument against Mitt Romney’s suggested economic model. However, the argument is part of a much larger debate. Republican’s and Romney make a strong argument in favor of austerity and a Hayekian /Austrian School  economic model, while Democrat’s and the President have been in favor of a pro-stimulus Keynesian model of deficits and spending.

The evidence for, or against, both economic models have been illustrated in Europe since the global financial crisis. The GOP has embraced the austerity of Great Britain and other nations and has seen their economies shrink and remain stagnant, while the US as other nations embarked on stimulus spending and are showing signs of GDP growth, however minimal.

In the last few years, Germany and Britain, in particular, have implemented precisely the policies that Romney favors, and they have been richly praised by Republicans here as a result. Yet these days those economies seem, to use a German technical term, kaput. Read more…