Economics Flash - The growth implications of Biden’s Build Back Better plan
- The Biden administration is now busy getting congressional approval for its Build Back Better plan, whose goal is to lift long-run growth via investment in physical and human capital.
- In an economy characterized by sizable slack, both the American Jobs Plan (AJP) and the American Families Plan (AFP) are likely to boost growth, even if higher taxes partly offset the positive impact of higher spending.
- In cumulative terms, by 2026, we expect the overall plan to increase actual GDP by 1.9% and potential GDP by 0.7%, with limited inflationary pressures.
- 1 Macro Analysis/Global G7 reiterates support for SDR allocation and seeks to boost its impact
- 2 Strategy Note/Global G7's 'Build Back Better World' is not an answer to China's Belt and Road
- 3 Strategy Note/Vietnam Vietnam: The best emerging market is still spoilt by foreign ownership limits
- 4 Macro Analysis/Pakistan Pakistan's FY22 Federal Budget – Serious push on growth
- 5 Strategy Note/Global Egypt's military spend is not securing the Nile in its dispute with Ethiopia
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