Author and Professor:Getting Back to Prosperity

The best thing is for the creditors and authorities to get a deal that helps Greece to grow,in the view of John B. Taylor,Professor of Economics at Stanford University.Each side is gonna try to get the best deal they can.If they can put in some good economic growth plans,I think that's the answer to this-to get Europe back on the growth track.The growth in the early eighties was 5.9%.Steady as you go,keeping the tax rate low-that's what my research shows.
We in America could get into a situation like Greece.We can get back on track with just some sensible adjustments.It shouldn't be that hard.The Fed has bought so much debt,people don't know how they're gonna get out of that,so the banks are sitting on all that cash.
We just have to contain the entitlement growth.It'll lead to a better system.We got away from all this in the eighties and nineties,but we fell back into it,the interventionist policies.Get back to predictable,reliable monetary policies and we'll be in good shape,Dr.Taylor feels.
John Taylor is a former member of the President's Council of Ecomomic Advisors from 1989-91.He is currently a Senior Fellow in Economics at the Hoover Institution.Dr.Taylor is author of the book "First Principles:Five Keys To Restoring America's Economic Prosperity."

Euro-zone Crisis Management Update

The Euro-zone is attempting to deal with both the global financial crisis and the regional debt problem,while closely monitoring for signs of inflation.The European Central Bank is holding interest rates steady for the time being.Jean-Claude Trichet,ECB President,said he expects the Euro-zone to grow at a moderate pace.The ECB will adjust liquidity as appropriate.We will continue to see moderate price developments.Inflationary pressures over the medium term will remain contained.
Mr.Trichet urged deficit cuts to consolidate recovery from the financial crisis.
As for the Euro-zone debt crisis,John Taylor,a professor at Stanford University,thinks there's expectation that,down the road,Greek debt will be restructured.It could be quite orderly,changed without a lot of problems.It's quite likely.
In a further unfolding of the debt crisis,Moody's credit rating agency has just downgraded Portugal's sovereign debt.The U.S. market didn't respond to the news,absorbed in the initially positive earnings reports.
Moody's Corporation(MOC)