The G8 and G20 summits of financial leders running simultaneously in Toronto are both revealing deep divisions among governments about how quickly publid spending deficits should be reduced. This has caused uncertainty in financial market jover the past few days, with the American “broow and spend” economists of the Obama administration warning that reducing deficits too quickly will push the economies of developed nations into the double dip recession governments have feared.
Leading European economies, particularly the Germans, are emphasising the need to curb government spending, and it is a possibility a G20 communique at the end of the conference will set out a timetable for how far and fast countries should retrench spending.
Read full article: G20 20 Divided On Deficit Reduction by John De Roe at The Daily Stirrer
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