There is a lot of speculation in the financial press about the shape and timing of the recovery. As one article implied there is a veritable alphabet soup out there. Tied in with this speculation is the disagreement about whether governments have provided enough fiscal stimulus. The conservatives are mounting a vigorous campaign to choke off any more fiscal expansion. However, given how poorly the labour markets are functioning and the fact that they trail behind the output side of the economy by some quarters, there is a strong case to be made for more fiscal stimulus to be applied. I definitely see this as being required in Australia – a third package aimed directly at employment rather than consumption. Not many will agree with me though.