Policy Reversals as Government Bubbles are Bursting

Policy Reversals as Government Bubbles are Bursting By Evangelos Otto Simos INTERNATIONAL ECONOMIC OUTLOOK Policy Reversals as Government Bubbles are Bursting By Evangelos Otto Simos INTERNATIONAL ECONOMIC OUTLOOK Dr. Simos is Director of Forecasting at e forecasting.com, a division of Infometricas Data Center, 65 Newmarket Road, Durham, NH 03824, U.S.A., www.infometrica.com, eosimos@e-forecasting.com. This report does not purport to be a complete description of global economic conditions and financial markets. Neither the Journal nor Infometrica, Inc. guarantee the accuracy of the projections, nor do they warrant in any way that the use of information or data appearing here in will enhance operational or investment performance of individuals or companies who use it. The views presented here are those of the author, and in no way represent the views, analysis, or models of Infometrica, Inc. and any organization that the author may be associated with. I. GLOBAL ASSESSMENT AND OUTLOOK T T he latest evidence on economic growth and inflation reinforce our view held two years ago that “like private bubbles, government’s bubbles are subject to correction. The twin-peaks of money and ...