The Bush tax cuts will be extended for two years, with a bonus: a one-year cut in the payroll tax for a year. Harvard economics professor Greg Mankiw writes of being “generally pleased with the compromise over taxes the President and Republicans struck yesterday.” But a random survey of reactions near and far suggests something other than pleasure as the common denominator.
Daily Archives: December 7, 2010
WILL POLAND RETHINK THE EURO?
Dropping out of the gold standard to adjust monetary policy in the face of a macroeconomic shock is no longer possible. The gold standard, after all, is long gone. But the next-best thing is still visible in Poland, albeit in relative and pre-emptive terms. Indeed, it’s striking how the country is growing while its neighbors are having a rough time. The comparisons of Poland with Ireland and Greece are especially striking. Why is Poland faring so much better? There’s no one answer, but for the moment there’s a connection between Poland’s relatively favorable trend and the fact that it hasn’t (yet) adopted the euro.