Written on 1 Mar 12 at 1:00 pm by Murry Page
www.mazmessenger.com
The News reported that Richard Fisher, President of the Federal Reserve Bank of Dallas, said Wednesday in a speech before the Bolsa Mexicana de Valores (the Mexican stock exchange) that, “México is actually doing better than the United States in many macroeconomic areas,” thanks to the soundness of its economy.
The US Congress, and its presidential candidates, he said, should “take a chapter from México’s book about implementing real fiscal reform.”
Making a comparison of the two countries, he pointed out that México has low levels of debt and fiscal deficit as well as a balanced budget, while the US Senate hasn’t managed to pass a budget in three years.
México’s 2011 budget deficit was 2.5% of its gross domestic product (GDP), he said, while the US’s deficit was 8.7%. México’s national debt is about 27% of its GDP; the US’s debt-to-GDP ratio, on the other hand, was 99% in 2011, and is expected to hit 116% in 2012, he said.
Fisher said that the fiscal reforms México has passed in the last decade have had a significant impact, while in the US, “American politicians and policymakers have proven incapable of fiscal reform.”
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