America needs a big stimulus package.

He is right in principle in demanding a major economic stimulus package from the German government that goes beyond the 35 billion already planned.

LONDON Have stimulus packages brought the world s traumatized economies back to life?

In addition, the odds Iran would accept such an offer might increase if the details were made public.

The diplomatic package could be made more attractive if the US would add more positive incentives.

Convincing Russia and China to support a package of requirements, incentives, and penalties would be important.

MUNICH Where is Angela? is the question The Economist asked when Nicolas Sarkozy, Gordon Brown, and José Manuel Barroso met to prepare a European economic stimulus plan without Chancellor Merkel being present.

The government s stimulus package demonstrates that it is aware of the risks in the global economy and is prepared to act decisively.

Last month, China announced a 586 billion economic stimulus package, some 25 of which is to help bolster conservation, environmental protection, and renewable energy efforts.

The United States favors continuing economic stimulus, while the European Union prefers fiscal consolidation.

The US government has pledged 787 billion in economic stimulus, or about 7 of GDP.

The Poverty of Stimulus

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The theory behind the massive economic stimulus efforts that many governments have undertaken rests on the notion of the output gap. This is the difference between an economy s actual output and its potential output.

The theory behind the massive economic stimulus efforts that many governments have undertaken rests on the notion of the output gap.

Incentives are distorted.

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But no German economist has come out against an economic stimulus program, and many favor one.

The German construction industry and retailing are still stable, as the latest survey of the Ifo Institute shows, and the whole world is profiting from this stability, as Germany is the second largest importer of goods and services after the US.

While US imports are declining sharply, German imports are holding up without any economic stimulus plan.

The Bogey of Fiscal Stimulus

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