The U.S. economy will probably expand more than 3% in 2011 and unemployment will drop to less than 9%, data that are more optimistic than most forecasters have suggested, according to this blog post. Financial conditions are improving, with banks writing off fewer bad loans and relaxing the standard for making new ones, and the household savings rate is leveling off. "Of course, the range of risks around my (and anybody's) forecasts are wide, and on the lower end of that range lies deflation. That's why I'd still like to see more [quantitative easing] and more fiscal stimulus," the blogger writes.
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