Deficits
in sentence
2171 examples of Deficits in a sentence
Trade
deficits
reflect transactions between producers and buyers, and those transactions are the result of incentives and price signals.
Undervalued exchange rates are only one of the policies that countries use to boost exports and restrain imports, so that they run trade surpluses, while their trading partners (including the US) run
deficits.
Countries that substitute government spending for market spending either generate inflationary budget deficits, or end up with excessively high tax rates that destroy incentives.
Incredibly, Japan was told to run huge budget
deficits
(reducing government saving) to boost domestic demand.
Thus, higher household savings negated the stimulus of government
deficits.
While government ran large deficits, the Bank of Japan kept the money supply tight.
Another factor impeding QE’s impact in the eurozone is low bond yields, which, by increasing measured pension-fund deficits, make some companies reluctant to invest and thus more likely to raise contribution rates and limit pension benefits.
The extra tax revenue that such a rebate would produce would reduce government
deficits
significantly.
It is up to the IMF to find ways to finance countercyclical fiscal deficits.ampnbsp;
This could be done partly by enlisting sovereign wealth funds and partly by issuing Special Drawing Rights so that rich countries that can finance their own fiscal
deficits
could cede to poorer countries that cannot.
But in the longer term, with
deficits
looming, international trade agreements torn up, and totally inadequate spending on vital infrastructure, education, and health care, things could turn out very badly.
Trade
deficits
do swell, but they cost Venice nothing, because they are denominated in Venice’s own currency, in exchange for which other countries freely provide goods.
Soon, every country in the world purchases V$ bonds to hold in their foreign-exchange reserves, thereby effectively financing Venice’s large budget
deficits.
He likens trade
deficits
to economic losses – almost to theft – and declares China the enemy.
Some of Trumpi’s advisers try to explain to him how trade
deficits
work in an economy that benefits enormously from having the world’s leading reserve currency.
Only then would Venice’s trade
deficits
become a problem, they tell him.
A renewed commitment to macroeconomic and financial stability allows governments to rein in persistent
deficits
and growing debts and address their economies’ increasing volume of bad loans.
The ECB’s low (in fact, negative) interest-rate policies helped sustain credit in general and ensure continued financing of government
deficits
in particular.
Trump and his advisers believe that international trade is a zero-sum game, and thus that tariffs are a direct route to smaller trade
deficits.
But the real source of US trade
deficits
is macroeconomic imbalances in the US economy, such as excessive household consumption and fiscal
deficits
– imbalances that tariffs will do very little to address.
What is French President Emmanuel Macron to make of the German budget announced earlier this month, which shows a marginal increase in defense spending but not enough to meet the NATO target, let alone to close past
deficits?
After all, its GDP fell much less, although it ran similarly large current-account
deficits
before the crisis – and ran much larger fiscal
deficits
for longer.
In small, open economies, higher
deficits
are unlikely to sustain domestic output, because most additional expenditure goes toward imports.
But there can be no doubt that, by keeping
deficits
under control, Latvia’s public finances are in much better shape today, with debt sustainability no longer a problem.
This trade-off is exemplified by widening fiscal
deficits.
The 1992 Maastricht Treaty committed European governments to cap public debt at 60% of GDP, and annual budget
deficits
at 3% of GDP.
And to attract that foreign capital, it has no choice but to run equally large balance-of-payments
deficits.
In 2014, the US ran trade
deficits
with some 95 countries.
In other words, America does not suffer from a small number of bilateral trade
deficits
that can be tied to charges of currency manipulation by countries like China, Japan, Malaysia, or Singapore.
In the end, there is no way around it: If Congress does not like trade deficits, it needs to address America’s saving problem and stop fixating on misplaced concerns over currency manipulation.
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