- 2.75% to 3.0% growth seen from 2012 onward
- Putting public debt on sustainable path critical to US recovery, could positively affect other countries
- US fiscal adjustment should start next fiscal year; should include entitlement reform, tax hikes
- Easy US yields appropriate for quite some time
- Risks to US rise if no agreement on fiscal plan; could cause rates to rise or sovereign downgrade
- Loss of confidence in US could cause negative spillovers in rest of world
Looks like the regular Article IV yearly review by the IMF…
