Stimuli Can Be Safely Removed

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By Tim Bond

Published: October 28 2009 16:04 | Last updated: October 28 2009 16:04

Following a powerful financial market recovery, it is tempting to assume that we have seen the best of the rally. A popular school of thought holds that the expiry of the extraordinary stimulus programmes will see economic growth and asset prices flop lower once again.

Such concerns are misplaced, tending to confuse a financial panic with a structural economic problem.

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