Bush's stimulus puny

$145 Billion sounds like a lot. That's the amount that President George Bush is promising to pump into the US economy in an attempt to avert recession.

Using the latest World Bank data on a purchasing power parity basis this is the equivalent of releasing $7.86 Billiion into the Australian economy. To put this into perspective, promised tax cuts are worth $32 Billion, and no-one seems too worried that these will have a significant effect on inflation or be overly expansionary in the economy.

If the US is going into recession I don't think this is going to make much difference.