The Reinhart/Rogoff rule (that economies slow once government debtpasses 90% of GDP) may reflect this point; high debt ratios are areflection of past deficits, past deficits reflect high governmentspending, and high spending reflects more government involvement in theeconomy. Our recent, very positive, special report
on Scandinavia showed that Sweden had overdone the big government by
the early 1990s and has reformed, and prospered, since then.
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