Analysis: Government policy becomes threat to global economy

02/11/2010 | Economist (free content), The

Investors have more to worry about than Greece's mountain of debt, according to The Economist. Fearful that their fragile recovery might collapse, developed countries have not offered a "credible, medium-term fiscal plan" for withdrawing stimulus, The Economist notes. "Some of today's nervousness comes from 'policy risk'. Nobody -- neither firms, banks nor individuals -- is quite sure where government policy is going. The more that governments can do to reduce such uncertainty, the stronger the recovery is likely to be."

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Economist (free content), The