Impications of the Global Financial Crisis for Developing Countries
Author
Danny Leipziger
Date
2009-02-24
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7538
D.Leipziger_Implications_Of_The_Global_Financial_Crisis_For_Developing_Countries1
Impications of the Global Financial Crisis for Developing Countries
- Speaker: Danny Leipziger, Vice President for PREM, the World Bank
- Date: February 24, 2009.
"...So, one observation that I would make is that, at the moment, the stimulus packages on the table do not add up to what is necessary, and there are probably still countries who do have what we call “fiscal space” to do some short-term stimulus. Of course, there is some concern about long term debt. And you saw in the US, President Obama has called for a session yesterday to talk about the medium-term debt profile and objectives. This is based on what economists call “Ricardian Equivalence” which is that if you start spending and people realize that, ultimately, they have to pay for it, they may not spend as much. That does not seem to have stopped the US consumer in the past, but it might now..."
Impications of the Global Financial Crisis for Developing Countries
- Speaker: Danny Leipziger, Vice President for PREM, the World Bank
- Date: February 24, 2009.
"...So, one observation that I would make is that, at the moment, the stimulus packages on the table do not add up to what is necessary, and there are probably still countries who do have what we call “fiscal space” to do some short-term stimulus. Of course, there is some concern about long term debt. And you saw in the US, President Obama has called for a session yesterday to talk about the medium-term debt profile and objectives. This is based on what economists call “Ricardian Equivalence” which is that if you start spending and people realize that, ultimately, they have to pay for it, they may not spend as much. That does not seem to have stopped the US consumer in the past, but it might now..."
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