10/05/2010 11:22 am ET Updated May 25, 2011

How Partisanship Is Blocking Economic Recovery in the U.S.

From Project Syndicate.

The Obama administration's insistence on fiscal rectitude is dictated not by financial necessity, but by political considerations. The United States is not one of Europe's heavily indebted countries, which must pay hefty premiums over the price at which Germany can borrow. Interest rates on US government bonds have been falling and are near record lows, which means that financial markets anticipate deflation, not inflation.