Nomura Securities on Global Economics: Romney's VP Choice to Focus on Fiscal Policy
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Nomura Securities on Global Economics: Romney's VP Choice to Focus on Fiscal Policy
Analyst, Lewis Alexander, said, "Governor Romney picked House Budget Committee Chairman Paul Ryan to be his running mate as the Republican candidate for vice president. Ryan's focus on fiscal policy may increase concerns about the “fiscal cliff", although this choice is unlikley to have a material impact on the outcome of the presidential election, in our opinion."
"The choice may affect financial markets in two ways. Chairman Ryan has been a prominent proponent of fiscal consolidation. The Romney campaign has effectively endorsed the fiscal plan originally proposed by Chairman Ryan in the spring of 2011. That plan calls for significantly smaller deficits in 2013 and 2014 than the president‟s budget and the Ryan plan also envisions lower spending, including on medicare, over the long term."
"Both of these factors may be a headwind for risky assets in coming months. In effect, with this choice concerns about the “fiscal cliff” may affect markets somewhat sooner than we had earlier thought."
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Analyst, Lewis Alexander, said, "Governor Romney picked House Budget Committee Chairman Paul Ryan to be his running mate as the Republican candidate for vice president. Ryan's focus on fiscal policy may increase concerns about the “fiscal cliff", although this choice is unlikley to have a material impact on the outcome of the presidential election, in our opinion."
"The choice may affect financial markets in two ways. Chairman Ryan has been a prominent proponent of fiscal consolidation. The Romney campaign has effectively endorsed the fiscal plan originally proposed by Chairman Ryan in the spring of 2011. That plan calls for significantly smaller deficits in 2013 and 2014 than the president‟s budget and the Ryan plan also envisions lower spending, including on medicare, over the long term."
"Both of these factors may be a headwind for risky assets in coming months. In effect, with this choice concerns about the “fiscal cliff” may affect markets somewhat sooner than we had earlier thought."
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