IMF set to approve Sri Lanka loan payment

25 08 2010

The International Monetary Fund (IMF) has indicated it will release the next tranche of a multi-billion dollar loan to Sri Lanka.

Following a two week mission to the country, the body gave an upbeat assessment of Sri Lanka’s economy.

It said government targets for deficit reduction were on track, with taxes increasing and spending being cut.

An IMF mission also arrived in Serbia on Monday to assess its economy with a view to releasing a loan payment.

The body agreed a 3bn euro ($3.8bn; £2.4bn) loan with the country last March.
‘Strong growth’

The IMF approved a $2.6bn (£1.7bn) loan to help Sri Lanka weather the global economic crisis last summer.

The Sri Lankan government also said it would use the money to pay for post-war reconstruction following the end of fighting with the Tamil Tiger rebels.

Continue Reading: http://www.bbc.co.uk/news/business-11064346





Trickle-Up Economics?

16 08 2010

You’ve probably heard of trickle-down economics: the idea that tax cuts for the wealthy manage to also help the middle class and poorer. Well, in the world of marginal tax rates, welcome to trickle-up economics: the idea that tax cuts for the middle class and poorer also help the rich.

This is a point that has gotten somewhat overlooked in the debate about the Bush tax cuts, which are scheduled to expire at the end of this year.

President Obama has proposed that the tax cuts for the very wealthiest Americans expire as planned, but that the tax cuts for all other American households be extended. One interesting quirk of our tax system, however, means that the tax cuts for the “middle class” also benefit Americans who are much richer than “middle class.” In fact, these “middle class” tax cuts benefit richer Americans more than they benefit middle-class Americans.

Here’s a chart, from the Center on Budget and Policy Priorities, showing the average tax savings for each income group that comes from the Obama administration’s tax proposal, rather than letting the tax cuts expire in their entirety:

Continue Reading: http://economix.blogs.nytimes.com/2010/08/13/trickle-up-economics/?ref=economy