Ending Government Stimulus, The Irish Experience

The federal government seems hell-bent on stopping stimulus spending on April 1st 2011 even if it means saddling municipalities with unpaid bills and hobbling the already weak recovery.  The Irish experience may be instructive.  Ireland is even more committed to stopping stimulus spending.  Unfortunately the results are a fairly concerning 1.2% drop in GDP is just one month and bond markets demanding sky high risk premiums with the economic shrinking so rapidly.