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.
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%.
Finally, while advanced economies had agreed to promote sustainable fiscal finances over the medium term, debt levels are expected to remain high in many countries in 2016.
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.
We should again look at the New Zealand model, which gave the flexibility to tackle the deficit and the debt over the medium term.
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.
The essence of the plan that I presented back in September was how do we increase growth and jobs now while providing clarity in terms of how we reduce our deficit and our debt medium and long term.
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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.
It said there were "severe doubts" about the sustainability of debt levels in the medium and long term.
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.
He has taken an approach here in the United States that has been aimed at growing the economy and creating jobs in the short term as well as dealing with our deficits and debt challenges in the medium and long terms.
"In the medium term the decision taken regarding the loss on bank deposits could have major ramifications for the eurozone if the European debt crisis re-escalates, " said Gary Jenkins, managing director of Swordfish Research.
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.
In order to tackle its debt, additional cuts worth 4.5% of GDP would also be needed over the medium term to reach the target of a budget surplus of 4% of GDP by 2018, the IMF said.
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