The International Monetary Fund has found another way that the US tops Europe.

But it warns that while fiscal stimulus – President Bush’s tax cuts – has helped the US and global economies to recover, the Bush administration is too optimistic about its budget deficit. The Fund thinks it could balloon to $550bn – that would be more than 5% of economic output, significantly greater than the 3% limit that eurozone countries are required to aim for.

$550 billion!? I’m really nostalgic for those days when the Republicans were the ones who wanted less spending and argued for reducing the deficit.