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Fri 03 Mar 2009Here's a better way to revive our fortunes
ECONOMICS: The Government must strike a balance between deteriorating public finances and deflation
IN MODERN industrial economies, there are what are known as “automatic adjustment mechanisms” which help to keep the economy near its long-term growth trajectory. If the economy is overheating, as in the Celtic Tiger period, the mechanisms start to slow down the economy. Equally, in times of recession, the mechanisms act to speed up the economy.
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