The US recovery is too slow, keeping unemployment high. It may stay high until 2013, the Organization for Economic Cooperation and Development says. Monetary policy is appropriate but the US must be ready to withdraw it quickly. Plans to ratchet down the deficit are ambitious but appropriately gradual, they say. Here’s the kicker: To encourage savings and reduce deficits, the US should look at a valued-added tax.
Ireland and Greece have a VAT, don’t they? Not sure that’s the answer…
