Deficits
in sentence
2171 examples of Deficits in a sentence
This would require Europe's governments to increase their
deficits
in the short run, while improving the long run outlook through serious pension reform.
Only after the fact, since the fall of 2009, has it become conventional wisdom that those intra-union current-account deficits, accumulating over a decade, were untenable.
Unemployment rates and budget
deficits
are higher, and public debt/GDP ratios are at record levels.
While emerging-market countries’ public-sector balance sheets are stronger than ever – with low
deficits
and debt accompanied by large foreign-currency reserves – household and corporate leverage have risen.
This is particularly true of emerging countries that, like Turkey, have been running large current-account
deficits.
The long-term consequences of the resulting surge in fiscal
deficits
are serious.
If the
deficits
are monetized by central banks, inflation will follow the short-term deflationary pressures; if they are financed by debt, the long-term solvency of some governments may be at stake unless medium-term fiscal discipline is restored.
Anyone who has taken a first-year undergraduate course in economics would have no difficulty in identifying the countries with the largest trade surpluses and
deficits.
Even if we look at current-account
deficits
relative to countries’ GDP, America’s 3.3% ratio exceeds that of almost every other economy.
The Government Debt BombSTANFORD – As economies around the world return to growth after the deepest recession in a generation, renewed attention is being paid to enormous fiscal
deficits
and vast expansions of government debt.
This year’s projected
deficits
(as a share of GDP) are estimated to be a remarkable 13.5% for the United States, twice the previous record at the depth of the horrific early 1980’s recession.
Since every dollar, euro, yen, rupee, or yuan borrowed today requires the same present value in future interest payments – and therefore future taxes – there are important long-term costs to balance against whatever benefits the
deficits
create today; there is no fiscal free lunch.
They pledge allegiance to long-term fiscal responsibility, yet propose budgets with large
deficits
for years to come and big hikes in the debt-GDP ratio.
Politicians from political parties out of power denounce the
deficits
and debt as a horrific legacy for our children and an insurmountable burden on the economy.
In the US in the 1980’s, Democrats excoriated President Ronald Reagan on deficits;Republicans now excoriate President Obama on his much larger
deficits
and debt.
Deficits
are convenient for politicians as they hide and delay the true tax cost of spending.
But when are
deficits
desirable, and when are they damaging?
Large
deficits
shift the bill for today’s consumption to future generations and can crowd out private investment, thereby slowing the improvement of living standards.
Deficits
are riskier if the level of the national debt, the accumulation of all previous deficits, is high or rapidly rising relative to GDP.
Deficits
are problematic if they finance consumption, not productive public investment on infrastructure.
And
deficits
can lead to inflation if central banks monetize the government debt, a serious concern in financial markets, as China has warned America.
The similarities are large trade deficits, manufacturing job loss, asset price inflation, rising debt-to-income ratios, and detachment of wages from productivity growth.
Previously, trade
deficits
were viewed as a serious problem, being a leakage of demand that undermined employment and output.
Since 1980, trade
deficits
have been dismissed as the outcome of free-market choices.
Moreover, the Federal Reserve has viewed trade
deficits
as a helpful brake on inflation, while politicians now view them as a way to buy off consumers afflicted by wage stagnation.
That means ending trade
deficits
that drain spending and jobs, and restoring the link between wages and productivity.
And if Japanese companies and households believe this fiction, they should rationally respond by saving to pay future taxes, thereby offsetting the stimulative effect of today’s fiscal
deficits.
Those administrations implemented their cuts anyway – and, as economists had warned, budget
deficits
increased sharply.
Within national income accounts, trade
deficits
represent the excess of a country’s consumption over production.
From an accountant’s perspective, that makes it logical to label trade
deficits
as negative savings.
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