Fiscal Policy
From South Korea to Brazil, a Global Guide to Stimulus Plans in 2020
A review of budgets in a dozen countries suggests politicians will be slow to prime the pump with spending.
Central banks say they’re running out of room to cut interest rates and it’s time for governments to take the lead in trying to spur demand via fiscal policy. But a review of budget plans in a dozen countries suggests politicians are being slow to heed the call—even though it’s cheap or free to borrow.
The export-dependent economy is growing at its slowest pace since the global financial crisis. The government cranked up spending by 9.5% in 2019, and its budget proposal for 2020 eyes a similar increase. The country can afford to splurge, having run surpluses in years prior.