Deficits
in sentence
2171 examples of Deficits in a sentence
But this could prove to be a hollow solution, given that the UK maintains a trade surplus with the US, and Trump is a vocal critic of American trade
deficits.
Adding to these fundamentals, populist rhetoric about introducing a quasi-currency or small-denomination IOUs (presumably to finance ambitious spending plans and larger budget deficits), and about not honoring the Bank of Italy’s debt, adds fuel to the financial fire.
Indeed, rapid growth in investment may translate into high import growth and trade
deficits.
The fundamental factors underlying the US external imbalance are large fiscal
deficits
and low household savings, owing to excessive financial leverage.
After all, its previous trade
deficits
in the era of reform – such as in 1992-1996 and 2003-2004 – all occurred at times of overheating.
If a eurozone breakup is to be avoided, escaping from continued recession will require increased fiscal
deficits
financed with ECB money.
Faced with private deleveraging in the 1990s, Japan avoided an even deeper depression only by running large public
deficits.
Thus, the Fed has implicitly viewed QE in part as a tool to ensure that rising bond yields do not offset the beneficial impact of large
deficits.
But if fiscal stimulus must be facilitated by central bank bond purchases to prevent yield increases and to assuage fears about debt sustainability, doesn’t that amount to monetary financing of fiscal
deficits?
The argument against is moral hazard: If we admit that modest ECB-financed
deficits
are possible and appropriate now, what will prevent politicians and electorates from demanding large and inflationary ECB-financed
deficits
on other occasions?
The prospect of reducing public
deficits
to less than 3% of GDP is unrealistic in both the Netherlands and Spain.
Despite the gravity of the situation, Hollande has three advantages: excessive austerity is unrealistic, given growing social opposition; public
deficits
are only a small part of Europe’s problems (and are not necessarily the source of the crisis); and a strong consensus has emerged outside of Germany to change tack.
Budget
deficits
and printing money, effective in the short run, provide only limited answers.
If big budget
deficits
don't do enough to get growth back to where China's leaders want it, and monetary policy will not do the trick, why not try devaluation?
Low debts are most useful for those who want to run temporary budget
deficits.
Since George W. Bush showed the way towards bank nationalization, vast public spending, industrial bailouts, and budget deficits, the Socialists have been left without wiggle room.
These institutions, based on free trade, competition, limited budget deficits, and sound money, are fundamentally pro-market; there is little leeway within them for doctrinaire Socialism.
In a nutshell, Keynes struggled against the notion that if only countries would cut their deficits, "confidence" would be restored, investment would return, and the economy would again attain full employment.
Under "IMF" theory, investors, seeing government resolve to eliminate deficits, flock to the country, economic performance recovers, and the policy is vindicated.
Even if "confidence" were the single most important factor,
deficits
are not the only, or even the most important factor determining investor confidence.
Greece now has a balanced current account – quite an achievement after double-digit
deficits
(as a percentage of GDP) a few years ago.
While several countries established legal limits to control spending, deficits, and debt, in some cases –for example, Argentina, Ecuador, and Venezuela – such laws were not enforced.
One regular aspect of post-war Latin America has been that such bonanzas have been undermined by large current account deficits, and thus indebtedness.
For the last decade, the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) were the eurozone's consumers of first and last resort, spending more than their income and running ever-larger current-account
deficits.
Unit labor costs fell in Germany and other parts of the core (as wage growth lagged that of productivity), leading to a real depreciation and rising current-account surpluses, while the reverse occurred in the PIIGS (and Cyprus), leading to real appreciation and widening current-account
deficits.
In Ireland and Spain, private savings collapsed, and a housing bubble fueled excessive consumption, while in Greece, Portugal, Cyprus, and Italy, it was excessive fiscal
deficits
that exacerbated external imbalances.
The resulting build-up of private and public debt in over-spending countries became unmanageable when housing bubbles burst (Ireland and Spain) and current-account deficits, fiscal gaps, or both became unsustainable throughout the eurozone's periphery.
Moreover, the peripheral countries’ large current-account deficits, fueled as they were by excessive consumption, were accompanied by economic stagnation and loss of competitiveness.
This implies significant easing of monetary policy by the European Central Bank; provision of unlimited lender-of-last-resort support to illiquid but potentially solvent economies; a sharp depreciation of the euro, which would turn current-account
deficits
into surpluses; and fiscal stimulus in the core if the periphery is forced into austerity.
If the peripheral countries remain mired in a deflationary trap of high debt, falling output, weak competitiveness, and structural external deficits, eventually they will be tempted by a third option: default and exit from the eurozone.
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