Fiscal policy in advanced economies is set to be loosened this year for the first time since 2010. Governments in the US and Canada have increased spending while budget deficits in many European countries will rise, in part due to the refugee crisis. This shift in policy is on a comparable scale to the easing of austerity seen in 2014. But the quid pro quo of looser policy this year is that policymakers are planning more austerity for future years.
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