The phrase fiscal cliff' was coined to capture the large and predicted reduction in the US budget deficit expected as specific laws kicked into effect from 2013.
In combination, these laws would put a big squeeze on the US economy as the combined impact was to increase taxes (in some cases by ending existing tax breaks originally designed to stimulate the economy) and also reduce state expenditure.
Critics worried that this 'double whammy' would send the US economy spiralling back into deep recession.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Chen Zhi: the kingpin of a global conspiracyChen Zhi appeared to be a business prodigy investing in everything from real estate to airlines. Prosecutors allege he is the head of something more sinister
-
Canadian stocks for a new era of deglobalisationGreg Eckel, portfolio manager at Canadian General Investments, selects three Canadian stocks
