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The IMF, International Monetary Fund, points out that US's economy is likely to see a 1.5 or 2% growth without the tightening fiscal policies. IMF also points out that there is very low private demand in Great Britain. They suggest government to adjust its initial fiscal plans. We can see that this relates to the use of fiscal policies and their impacts. Here, we can notice that instead of boosting economic growth, US fiscal policies, which I believe is the fiscal cliff. The government's plan is to increase tax rates and decrease government spending. This could possible reduces income and slows the growth of the economy.

The International Monetary Fund is reviewing whether China's currency should still be considered "substantially undervalued," in light of its rapid rise in the past year. The review could take months, but if the IMF decides China's yuan is just "undervalued," that milder label could undercut U.S. efforts to challenge Beijing's currency policy in an election year.

LISBON: The Portuguese economy is set to contract by 2.3 per cent this year due to a sharp fall in domestic demand and disappointing export growth

This article basically talks about the decreasing growth of the Portuguese economy. It states that the Portuguese economy will contract by 2.3% this year due to a steep fall in aggregate demand and exports. This can only lead to negative consequences as the firms will start to sell less/produce less and therefore earn less of a profit or no profit at all. SO what these firms will start to do is cut costs of FOP which basically means lay off workers, raising unemloyment, further worsening the economy, because then the people laid off will buy less from other firms and the same process will occur over and over again untill you get to the economic situation of Greece.

This article is of great interest to us for a variety of reasons. Firstly, it is filled to the brim with information regarding the need for import substitution, providing us with a real-world example in Pakistan. Also, it is important because it discusses debt and the looming possibility of defaulting on debt, which is something that has become a hot-button issue in the US economy as of late, given the importance of the debt ceiling.

This article is about the drop in balance of payment deficit in Egypt in 2012. Balance of payment deficit is when the import of goods and services exceed the export of goods and services. A bank of the country says that such a situation has occurred because of the large number of Egyptian laborers working abroad, especially in countries in The Gulf. We know that in theory, the balance of payments should equal 0. Although balance of payment deficit dropping is a good thing, economists still say that this is still a pressure on the Egyptian government and they will have to strike a deal with the IMF.