With the threat of a recession suddenly more ominous, many ask whether fiscal tightening still makes sense.

"They actually did do some decent fiscal tightening and it has been painful."

By itself, fiscal tightening will serve only to compress consumption and Government purchases, thus releasing resources.

Substantial fiscal tightening would insure a recession that would spread abroad as America's imports fell.

Its oil windfall, though, has raised questions about the prospects for such fiscal tightening.

Accordingly, you could say that part of the answer is the UK's embrace of early fiscal tightening.

Just look at the effects of fiscal tightening in China on financial market turbluence in recent months.

The single currency should be supplemented with fiscal tightening and joint long-term debt.

No, they are threatening a sterling crisis because the fiscal and monetary tightening has not been brutal enough.

And with the fiscal tightening yet to fully bite, we will have to brace ourselves for a bumpy ride.