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Indonesia’s fiscal rule, US-China trade truce

Adopting a more flexible fiscal target would give Indonesia’s government more room to support growth during periods of weak demand without threatening the country’s fiscal position. Meanwhile, Asian equity markets have reacted positively today to the news that President Trump has signed off on a trade deal with China. However, given the long list of sticking points that remain unaddressed, any truce will not return the US-China relationship to the pre-trade war status quo.

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