The Spanish government was able to find buyers for its medium-term debt this morning, at a not-too-exorbitant rate of interest of about 5%.
The Goldilocks policy, as the IMF calls it, urges countries to embark on a gradual fiscal adjustment in the short term, if the markets allow it, coupled with a credible medium-term debt-reduction plan.
We can also work together to build a framework, put together a proposal that should have bipartisan consensus built around the principle of balance, as we tackle our long-term and medium-term deficit and debt challenges.
We have to deal with our medium- and long-term debt and deficit issues, and obviously we have to make some headway in the short term, as the President has talked about, on wasteful spending.
On the budget, he should promise to cut tax rates only as part of a credible, medium-term plan to stabilise the debt, and refuse to rule out raising net revenue in the process.
Nevertheless, in the medium term the firm will probably have to issue more long-term debt to finance itself (it hopes to gain an investment-grade credit rating this year) and raise more equity, perhaps by listing.
We should take action to grow our economy, create jobs, and take action to address our medium- and long-term deficit and debt challenge.
The President also has a plan which deals with medium- and long-term deficit and debt reduction, and laying a foundation for future economic growth.
And the medium-term sustainability of Brazil's domestic debt is genuinely in doubt.
However, the Bank has somewhat reduced its medium-term forecast for consumer spending growth and says that it could turn out to be even lower because household debt has reached a record level in relation to income.
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