Deficits
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2171 examples of Deficits in a sentence
But such capital inflows threaten exchange-rate overvaluation, rising current-account deficits, and asset-price bubbles, all of which have in the past led to crises in these economies.
Contrary to conventional wisdom, Italy’s high public debt is not the result of runaway budget
deficits
– at least not of recent ones.
The “logic” of that ideology holds that trade
deficits
are proof of unfair practices by other countries, and should thus be met with tough and decisive action.
Each agrees that America’s big bilateral trade
deficits
with countries such as China, Japan, Germany, and Mexico are proof that America is being taken for a ride by its competitors.
Trump and his trade advisers believe that by reducing or even eliminating those deficits, they can create well-paid jobs for American workers.
But it is not in America’s interest to accentuate and extend its payment
deficits
at the expense of an internationally competitive economy with strong industry and restrained consumption.
But financial intermediation would never have brought disaster (or indeed gone so far) save for the global imbalances arising from America’s twin trade and budget deficits, financed to a large extent by Chinese savings.
Yet its
deficits
in this regard are its greatest strengths as a model for effective global governance in the twenty-first century.
The resulting
deficits
may be described as “supply-side economics,” rather than Keynesian stimulus, but the effect will be the same: growth and inflation will both increase.
These tax reforms will create even bigger budget deficits, which in turn will stimulate more growth and inflation.
As time passes,
deficits
accumulate.
As
deficits
accumulate, the cost of servicing the net international asset position grows.
Unfortunately, several emerging economies – with the notable exception of China – relied on these abnormally large capital flows to finance domestic demand, and their current accounts slid into unsustainably large
deficits.
India is suffering from a marked growth slowdown, substantial fiscal and current-account deficits, labor-market rigidities, and uncertainty about economic policy until after its month-long general election ends in May.
As a third step, the GCC countries should issue debt and sukuk (Sharia-compliant bonds) to finance budget
deficits
as well as development projects and infrastructure investment.
The GCC countries have low levels of government debt and can run moderate budget
deficits
without jeopardizing fiscal sustainability.
It would reduce pressure on the governments of Italy, Spain, and other high-interest countries to make the politically difficult decisions that are needed to cut long-term fiscal
deficits.
The economic purpose is to re-channel private saving from
deficits
to productivity enhancing investments.
Among the most vulnerable countries are Turkey, South Africa, Brazil, India, and Indonesia – the so-called “Fragile Five” – all of which are characterized by twin fiscal and current-account deficits, high inflation, in addition to faltering GDP growth.
Growth not only raises incomes, but also makes vexing problems such as bad bank loans and budget
deficits
more manageable.
The austerity measures that many countries have adopted to reduce public
deficits
and debt are hampering fiscal policy, while near-zero policy rates in the largest developed economies have constrained their scope for monetary-policy maneuvering.
Fiscal
deficits
must be cut to reduce debt levels.
Indeed, only those countries that were running large current-account
deficits
before the crisis were affected by it.
That is why risk premiums are continuing to fall in the eurozone, despite high political uncertainty in Italy and continuing large fiscal
deficits
elsewhere.
The peripheral countries’ external
deficits
are falling rapidly, thus diminishing the need for foreign financing.
But the eurozone’s peripheral countries simply did not have a choice: they had to reduce their deficits, because the foreign capital on which their economies were so dependent was no longer available.
Rising risk premia undermine the expansionary effect of fiscal
deficits
even during recessions.
By contrast, the defining event shaping European monetary policy is the hyperinflation of the 1920’s, filtered through the experience of the 1970’s and 1980’s, when central banks were enlisted once again to finance budget
deficits
– and again with inflationary consequences.
Similarly, the ECB might consider not only how monetary accommodation allowed governments to run large budget
deficits
in the 1920’s, but also how central bankers’ failure to respond to the financial crisis of the 1930’s fed political extremism and undermined support for responsible government.
Yes, the soaring
deficits
may contribute somewhat to international financial instability.
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