The Super Committee’s failure to pass new deficit reduction legislation and its implications
The Super Committee’s failure to pass new deficit reduction legislation and its implications
Global & Regional Focus Notes
25 Νοεμβρίου 2011
• Although the direct medium-term implications from the automatic spending cuts for real economic activity are minimal, the committee’s failure has reduced the likelihood of an extension of the payroll tax cut and emergency unemployment benefits, set to expire at year end.
• Our 2012 GDP forecast of about 2.0% supposes the extension of those provisions through next year. However, if Congress leaves both of them to expire, this would trigger a significant tightening in fiscal policy, reducing real GDP growth to a year average of 1.4%.
Δείτε επίσης
