Deficits
in sentence
2171 examples of Deficits in a sentence
As a result, the US economy has almost stopped growing, particularly as the federal government (together with state and local governments) are now reining in their own budget
deficits.
That reduction in potential
deficits
and debt can by itself give a boost to the economy in 2011 by calming fears that an exploding national debt would eventually force the Federal Reserve to raise interest rates – perhaps sharply if foreign buyers of US Treasuries suddenly became frightened by the deficit prospects.
Improving this state of affairs will require factor- and product-market reforms, together with deep reductions in public-sector
deficits.
Nor would Keynes have been as confident as Skidelsky that the counterfactual of continued high
deficits
would have been without risk or cost.
Likewise, if it was true that higher
deficits
carried no risks, but brought increased benefits, then the Financial Times would have been full of articles by investment-bank economists saying just that.
The major ratings agencies are increasingly complaining about the country’s lack of a growth strategy and its outsize budget
deficits.
Unfortunately, growing
deficits
mean it will be hard to make the legislation’s personal tax cuts permanent any time soon.
Yet he is threatening a trade war because of
deficits
that reflect America’s own saving-investment imbalance.
It’s not hard to see why the US runs chronic current-account
deficits.
Indeed, the accession countries that have not implemented a currency board have seen their budget
deficits
surge--exceeding 9% of GDP in Hungary in 2002 and more than 5% in Poland, the Czech Republic, and Slovakia--while large capital inflows have kept their currencies under strong pressure to appreciate.
Large budget
deficits
support growth, but inflation evidently is not a problem.
So, even when public
deficits
and debt are low before a crisis, they can rise sharply after one erupts.
But it also stands at or near the top in deficits, tax rates, prison inmates, and, by a wide margin, welfare recipients relative to population.
A government can finance external and fiscal
deficits
if the shock is perceived as short-lived.
In the majority of cases, the twin surpluses of 2011, prior to the peak in oil prices, gave way to substantial twin
deficits
in 2016.
The fact that the twin
deficits
remain so large in most cases is an indication that even with substantial adjustment efforts in some countries, much of the shortfall in export and fiscal revenue was financed with new domestic and external debt.
But even with such favorable initial conditions in “stocks,” the combination of record or near-record twin
deficits
financed through reserve losses and US dollar-denominated debt has led to a spate of credit-rating downgrades, with the most recent coming from Fitch last week.
The fact that international financial markets welcome the placement of new debt by countries with obviously large and unresolved twin
deficits
primarily reflects their search for any kind of yield in an era of exceptionally low global interest rates.
Fiscal policy, for its part, was constrained by large budget
deficits
and rising stocks of public debt, with many countries even implementing austerity to ensure debt sustainability.
For starters, thanks to painful austerity,
deficits
and debts have fallen, meaning that most advanced economies now have some fiscal space to boost demand.
In this situation, government
deficits
rise naturally, as tax revenues decline and spending on unemployment insurance and other benefits rises.
True, if governments stop spending altogether,
deficits
will eventually fall to zero.
It should be reconstituted with far fewer members, including only countries that do not run persistent current-account
deficits.
EU countries agreed to limit their fiscal
deficits
to 3% of GDP to ensure debt discipline under the euro, so that no country could use the new currency to take its neighbors hostage and force them into bailout operations.
In the remaining 68 cases, however,
deficits
above 3% of GDP were clear violations of the Pact, and the European Council of Finance Ministers (Ecofin) should have imposed sanctions.
In a world where international investors (from both the private and official sectors) routinely wring their hands about US fiscal
deficits
– and then go out and buy more US government debt – who knows the answer?
That argument was accepted, and the SGP was supposedly rendered more “intelligent” by, for example, permitting budget
deficits
to be adjusted for the economic cycle, adding medium-term objectives for expenditure, and introducing escape clauses.
Huge bilateral trade deficits, accusations that China keeps its currency undervalued, and a rash of defective and dangerous Chinese-made exports have fueled a protectionist backlash in the United States and Europe.
And this is as serious a problem in the economies running trade surpluses as it is in those running
deficits.
There is a very strong correlation between rising labor productivity and economic growth, which holds for countries with trade surpluses as well as those with
deficits.
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