Beijing is clearly getting nervous about the pace of growth in the world’s second-largest economy. This week the release of more important economic data will provide us with further insight into what is happening in the world’s second-largest economy.
Our casual evidence indicates that government spending boosts gross domestic product during recessions. But we don’t really have a satisfying, formal, modern, rigorous, academic macroeconomic model that explains this fact.
The characterisation of Europe as “elderly and haggard” by Pope Francis is an accurate one, but on Dec. 4 the European Central Bank could lay the groundwork to try and revitalise the region's sagging economy. And though quantitative easing might be justified on inflation levels (prices are likely to weaken further on falling commodity prices)--Draghi clearly faces tough opposition within the ECB, hence QE hasn't happened yet.