Stimulating Debate (The Economist)

The Economist published article about dilema of the authorities. Reduce the stimulus now and they risk plunging the economy back into recession, but leave the stimulus in place for too long, and they risk damaging long-term growth prospects. The stimulus may have prevented the global economy from slipping into depression. In the medium term, however, academic studies suggest that higher government spending leads to slower economic growth. The packages have not really dealt with the problem of excessive debt, but merely transferred it from the private to the public sector. see: http://www.economist.com/business-finance/displaystory.cfm?story_id=15453057