Government Spending Cuts Escalate Clashes Over Monetary Policy

The Wall Street Journal (online registration required): Many central bankers want advanced economies to boost government spending to snap the global economy out of its funk. Winning cooperation from elected officials is proving difficult.

In the U.S., government outlays on goods and services as a share of the economy have fallen to historic lows. Consumption and investment by all governments—local, state and federal combined—dropped to 17.6% of gross domestic product in the fourth quarter of 2015, matching its lowest level in 66 years, according to the Commerce Department....

Read article