Tag: fiscal policy
We found two interesting points in the forecasts the European Commission published today: 1) The times where forecasters increase their growth expectations for the Euro area seem to be over. 2) Given a still significant output gap and limited room for manoeuvre for the ECB, the debate about how restrictive fiscal policy should be could soon flare up again.
Based on an interview with Prime Minister Stoltenberg, it is indicated in an article in today’s Dagens Næringsliv (DN) that the present government’s budget for 2014 will be tight. This is probably wrong.
The Netherlands is going through a painful balance sheet recession and the outlook remains cloudy. Fiscal policy is tight up to now. While we consider a complete policy u-turn unlikely, we do expect the Dutch government to move towards somewhat less …
Tight fiscal policy by way of spending cuts and tax increases is one of the key reasons why the Euro area struggles to get out of recession. Expectations for a return to growth next year are usually based on the …
We expect the debt office to forecast a borrowing need for 2013 of 25 bn SEK (+10bn from June). Gross issuance of nominal bonds should be increased by 4-7 bn. ASW spreads are fairly priced given bond supply and are mostly driven from the Stibor side (tighter). 2-10s should have further to go in the steepening trend (bond supply adds to monetary easening and ALM regulation relief).