Trump stimulus in jeopardy, but global fiscal policy being eased

In our last Global Policy Watch, published in April, we argued that aggregate fiscal policy in advanced economies was likely to be loosened slightly in the coming year or two. Since then, the chances of a substantial fiscal boost in the US have diminished further, but it has become clearer that governments in Europe and Japan are likely to ease up on austerity. The upshot is that fiscal policy for advanced economies in aggregate is still likely to be loosened slightly.