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Economic policy should continue to sustain the recovery and address financial weaknesses and longer term fiscal sustainability. Monetary policy should continue to support the recovery. Legislative decisions are required to avoid the fiscal cliff in 2013 due to the scheduled expiration of tax cuts and automatic spending cuts, while further reducing the federal budget deficit at a gradual pace so as to put the federal debt-GDP ratio on a downward path and restore fiscal sustainability. The United States has been active in its efforts to reduce the risk of financial crises, thanks notably to the Dodd-Frank Act, which should be fully implemented. In addition, the Federal Reserve and other US agencies with financial responsibilities are engaged with regulators from other countries to find ways to address the vulnerabilities exposed by the crisis. Banking institutions should be encouraged to maintain high levels of equity capital, and efforts to develop improved analytical tools and information systems to monitor risks to the financial system should be continued.