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Pissarides, Christopher

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Blog EUROPP - United Kingdom | 07/11/2012

US president must tackle debt

Barack Obama must now get a grip on the US's debt problem. And if he's successful he could become a model for European economic policy, writes Christopher Pissarides on the London School of Economics' EUROPP blog: "Just as Europe is sinking itself deeper into recession with its austerity politics, the United States is showing signs of recovery with policies that are having some impact on job creation. But sooner or later America will have to face its debt problems, otherwise disruption in world financial markets will continue to the detriment of us all. Obama seems to be more prepared to tackle the debt problem than his rival, and his election should be good news for us in Europe. And unlike us, he seems to be doing it the right way, waiting for the economy to show firm signs of recovery before hitting it with cuts. Or at least let's hope that this is what he plans to do, now that the election threat is out of the way."

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