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Deficits in sentence

2171 examples of Deficits in a sentence

Eurozone rules mean that many member countries are committed to reducing their deficits.
If governments run larger fiscal deficits and finance this not with interest-bearing debt but with central-bank money – nominal demand will undoubtedly increase, producing some mix of higher inflation and higher real output.
It is often claimed that monetizing fiscal deficits would commit central banks to keeping interest rates low forever, an approach that is bound to produce excessive inflation.
Very small money-financed deficits would produce only a minimal impact on nominal demand: very large ones would produce harmfully high inflation.
One thing is certain: Relying on structural reform, on purely monetary policies, or on the fiscal policies available to governments that believe that all deficits must be financed with debt will not reverse the world’s chronic deficiency of nominal demand.
Like Argentina, Greece has a fixed exchange rate, a long history of fiscal deficits, and an even longer history of sovereign defaults.
Is it because the Japanese government delayed action for too long before accepting budget deficits?
When investors and central banks place their wealth in Treasury bonds and other US assets, the US government can go on spending whatever it needs to sustain its many security commitments around the world, and to finance its trade and budget deficits.
Admittedly, the country’s economic performance after the oil shock of the early 1970s was poor, marked by slow growth, high inflation and unemployment, huge fiscal deficits, increasing debt, a declining currency, and inadequate infrastructure.
The obvious arithmetical result was to inflate past deficits – including for the year 1999.
In the case of Trump’s trade war, US policy also reflects a misunderstanding – one that economists have repeatedly pointed out – about bilateral trade deficits.
The modern economy depends on bilateral trade deficits; it would collapse without them.
A busted bubble led to a massive Keynesian stimulus that averted a much deeper recession, but that also fueled substantial budget deficits.
Furthermore, during these nearly 15 years, most governments have managed their accounts responsibly: small or no fiscal deficits, low inflation, well-targeted anti-poverty programs, and so on.
By contrast, those who predict generally high real interest rates over the next generation point to low savings rates in the US, high spending driven by demographic burdens in Europe, and feckless governments running chronic deficits and unsustainable fiscal policies.
It is the one policy that will always stimulate nominal demand, even when other policies – such as debt-financed fiscal deficits or negative interest rates – are ineffective.
History provides many examples of excessive monetary finance, from Weimar Germany to the many emerging economies where governments have pressured central banks to finance large fiscal deficits, with high inflation the inevitable result.
But policymakers always have another option for creating nominal demand: printing money to finance their fiscal deficits.
Most West European countries lowered budget deficits to 3% of GDP to meet the terms for joining the European Monetary Union.
Thanks to the fiscal rules of the Stability and Growth Pact, the euro area achieved its soundest budgetary position in 2007, bringing deficits to their lowest levels in 25 years.
America, the BalancedCAMBRIDGE – When the United States’ current account fell into deficit in 1982, the US Council of Economic Advisers accurately predicted record deficits for years to come, owing to budget deficits, a low national saving rate, and an overvalued dollar.
For starters, the world’s investors declared loud and clear in 2008 that they were not concerned about the sustainability of US deficits.
It is possible that, properly measured, the true deficits were smaller than has been reported, and even that, in some years, they were not there at all.
The reported US current-account deficits from 1982 to 2013, based on subsequent revisions, total $9.5 trillion.
During his primary and general election campaigns, Trump lied incessantly about himself, his businesses, his opponents, other countries’ behavior and motivations, America’s electoral system, the size of trade deficits, the actions of the Federal Reserve, and data on everything from labor to crime (to name a few examples).
The highest priority problem is the overall budget’s medium-run outlook, as the Bush tax cuts have opened Reagan-size deficits that threaten to cripple US economic growth.
In reality, this is more of an opportunity than a problem: if we did not expect that doctors and nurses will be able to do marvelous things in a generation or two that they cannot do now, we would not be projecting serious fiscal deficits arising from the health programs.
For starters, the money saved from a reduction in subsidies or an increase in taxes in the oil sector could be used either to reduce budget deficits or to fund desirable spending (such as US highway construction and maintenance).
The government (the visible hand) sets the benchmark price for risk-free financial assets through monetary policy and control over fiscal deficits, while the market (the invisible hand) sets the risk premia of risky assets above the benchmark rate.
As the recent crises in advanced countries demonstrated, this is not a safe assumption: Unsustainable public debt and fiscal deficits forced central banks to expand their balance sheets massively, causing benchmark rates to turn negative in real (inflation-adjusted) terms.
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