The Trump fiscal stimulus, which has turned out to be larger than seemed likely a few months ago, should boost economic growth in the US a little, and encourage the Fed to press on with six rate hikes between now and mid-2019. But at a global level, any fiscal loosening this year will be very modest. Governments in Germany and Italy are likely to ease fiscal policy only very slightly. And Japan is unlikely to make any major fiscal policy changes until its sales tax hike planned for late 2019.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services