Deficits
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2171 examples of Deficits in a sentence
Unless the eurozone moves toward greater economic, fiscal, and political integration (on a path consistent with short-term restoration of growth, competitiveness, and debt sustainability, which are needed to resolve unsustainable debt and reduce chronic fiscal and external deficits), recessionary deflation will certainly lead to a disorderly break-up.
Given Britain’s chronic trade and current-account deficits, an exit from the euro would have necessarily caused a decline in the international value of UK bank deposits.
Had London found itself in the clasp of the European Central Bank’s policies in the 2008-2012 period, Britain’s large trade and budget deficits, in conjunction with massive bailouts for the City, would have made the Greek, Irish, Portuguese, and Spanish bailouts look like child’s play.
A few years ago, countries like Spain and Portugal were running large current-account
deficits
and needed capital inflows totaling roughly 10% of their GDP.
For the ASEAN-5, current-account
deficits
averaging 4% of GDP in 1996-97 swung dramatically into average surpluses of 6.8% of GDP in 1998-99.
Aspiring fiscal conservatives around the world thus might be interested in learning four tricks that American politicians commonly use when promising to cut taxes while simultaneously reducing budget
deficits.
Moreover, the region had relied excessively on foreign savings to support growth, with many countries running large long-term current-account
deficits.
The latter was intended to impose market discipline, and the former, to preserve the stability of public finances by fixing a strict limit on the size of national budget
deficits.
The Stability and Growth Pact clearly did not prevent “excessive” deficits, and the no-bailout clause failed its first test when European leaders, facing the Greek crisis, solemnly declared on February 11 that euro-zone members would “take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole.”
We therefore propose that contributions to the EMF should be based on member countries’ fiscal
deficits
and public debt levels, because both represent warning signs of impending liquidity or insolvency risk.
Romney’s proposed contractionary policies – the attempt to reduce
deficits
prematurely, while the US economy is still frail – will almost surely weaken America’s already anemic growth, and, if the euro crisis worsens, it could bring on another recession.
If Trump cuts taxes and manages to enact a massive infrastructure program, America’s budget
deficits
will rise, perhaps dramatically.
In that case, the US economy would not heat up, the stock market’s rally might reverse, the Fed might postpone new interest rate increases, and American
deficits
would not spiral out of control, as they did during George W. Bush’s presidency, following the September 11, 2001, terrorist attacks.
International measures of press freedom and corruption reveal persistent
deficits
as well.
Trillion-dollar
deficits
as far as economists can project are prima facie evidence that the arc of fiscal policy in the US bends in the wrong direction.
Capital-account surpluses, mirrored in current-account deficits, summed to about $3.3 trillion from 2010 to 2017, compared to an $8 trillion aggregate federal deficit.
It makes it easier to eliminate budget deficits, and it makes it possible to increase education spending and to fund training schemes for the long-term unemployed.
Several other countries in Central and Eastern Europe, such as Hungary, Ukraine, and the Baltic states, were also living dangerously, with large current-account
deficits
and firms and households running up huge debts in foreign currency.
They reduced inflation, floated their currencies, ran external surpluses or small deficits, and, most importantly, accumulated mountains of foreign reserves (which now comfortably exceed their short-term external debts).
When output crumbled due to a profound banking and financial crisis (linked to the collapse of the gold standard), tax revenues plummeted in the US and Europe, and conservative governments tried to cut budget spending to limit budget
deficits.
Moreover, as the recession deepens, resulting in even wider fiscal deficits, another round of austerity will be needed.
The flow imbalances include a deepening recession, massive loss of external competitiveness, and the large external
deficits
that markets are now unwilling to finance.
There are large current-account surpluses among emerging markets (a big change from 1997, when most emerging markets had deficits).
Fifth, the higher the unemployment rate goes, the wider budget
deficits
will become, as automatic stabilizers reduce revenue and increase spending (for example, on unemployment benefits).
Thus, an already unsustainable US fiscal path, with budget
deficits
above 10% of GDP and public debt expected to double as a share of GDP by 2014, becomes even worse.
But, despite persistent deflationary pressure through 2010, rising budget deficits, high financial-sector bailout costs, continued monetization of deficits, and eventually unsustainable levels of public debt will ultimately lead to higher expected inflation – and thus to higher interest rates, which would stifle the recovery of private demand.
If, like Japan in the late 1990’s and the US in 1937, they take the threat of large
deficits
seriously and raise taxes and cut spending too much too soon, their economies could fall back into recession.
But recession could also result if
deficits
are allowed to fester, or are increased with additional stimulus to boost jobs and growth, because bond-market vigilantes might push borrowing costs higher.
Back then, the demise of the Bretton Woods system of fixed exchange rates had left central bankers exposed to political pressure in favor of more expansionary policies and even monetary financing of fiscal
deficits.
Government, too, dissaved by running
deficits.
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