Both samples show a negative relationship between government size and growth, though the reduction in growth as government becomes bigger is far more pronounced in Europe, particularly when government size exceeds 40 percent of GDP.
Mr. Bernanke also reiterated the fact that neither he nor the members of the FOMC team are convinced of the efficacy of another round of full-blown QE asset purchases as regards the mandates of economic growth, reduction in unemployment, and maintenance of benign inflation conditions.
And as the CBO has said, and as outside economic organizations have said, we'll see a contraction in the amount of GDP growth -- reduction in the amount of GDP growth by a full half of a percent or more.