BUSINESS
06/23/2011 06:07 pm ET Updated Aug 23, 2011

Simon Johnson: Fiscal Contraction Hurts Economic Expansion

The United States has a large budget deficit and a ratio of debt to gross domestic product that, in most projections, continues to rise over time. Some House and Senate Republicans are arguing strongly that this situation calls for big, immediate cuts in government spending — for example, as part of any agreement to increase the federal government’s debt ceiling.

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