Deficits
in sentence
2171 examples of Deficits in a sentence
In the long term, large budget
deficits
lead either to a crisis or to slower economic growth.
But even in the short term, there is a negative correlation between large budget deficits, slow economic growth, high inflation, and a distorted foreign-exchange market.
Moreover, fiscal
deficits
and inflation squeeze out investment and limit productivity gains.
Entry into the euro as soon as possible is the best strategy for the accession countries, because it will mobilize them to complete structural reforms in order to meet the Maastricht criteria for inflation, interest rates, fiscal deficits, and public debt.
In normal circumstances, economies overcome a debt crisis by cutting government deficits, shifting production from domestic sales to exports, and recapitalizing banks.
Germany has also continuously failed to meet its commitment to spend 2% of its GDP on defense, at the same time that it has insisted that troubled EU economies stick to austerity budgets that limit their
deficits
to a fixed proportion of their economic output.
With US federal
deficits
rising toward $1 trillion a year, the issue is becoming cripplingly urgent.
True, the private sector will have much re-structuring to go through and the big
deficits
have been accumulated in the crisis must be unwound.This will mean a radical re-structuring of the state and its services.
The gravest threat comes from the wave of austerity sweeping the world, as governments, particularly in Europe, confront the large
deficits
brought on by the Great Recession, and as anxieties about some countries’ ability to meet their debt payments contributes to financial-market instability.
The outcome of premature fiscal consolidation is all but foretold: growth will slow, tax revenues will diminish, and the reduction in
deficits
will be disappointing.
With corporations sitting on cash, governments trying to rein in
deficits
by cutting expenditure and raising taxes, and households spending less on residential construction, demand is weak and uncertainty is high.
But Ireland and Spain had budget surpluses and low debt before the crisis, which quickly turned into large
deficits
and high debt.
So now European leaders say that it is the current-account
deficits
of the eurozone’s member countries that must be kept in check.
So, how will the European Union distinguish between “good” current-account
deficits
– a government creates a favorable business climate, generating inflows of foreign direct investment – and “bad” current-account
deficits?
Preventing bad current-account
deficits
would require far greater intervention in the private sector than the neoliberal and single-market doctrines that were fashionable at the euro’s founding would imply.
US budget
deficits
as far as the eye can see might excite fear of losses on US Treasury bonds.
In particular, after 2001, many developing countries overcame their historic pattern of using periods of capital inflows to finance large fiscal and current-account
deficits.
By 2008, they were in a strong enough position to respond to the financial crisis by allowing larger budget
deficits
and thus mitigating the downturn in 2009.
Some of these countries used the renewed capital inflows to run large current-account
deficits
after 2010 as well.
Such deficits, together with high inflation rates, earned Brazil, Turkey, and South Africa their membership on the Fragile Five list of countries that were hit particularly hard by Bernanke’s announcement in 2013.
In the past decade attention has focused on bringing down budget deficits, establishing the EU convergence targets and the like.
Moreover, the prospect is not a distant one, but something knocking at the door: population (hence the number of taxpayers) is already declining, the social security accounts are already turning to
deficits
and 15 years hence the debt mountain will be crushing capital markets.
Low interest rates and easy monetary policy have papered over a multitude of financial vulnerabilities around the world, from Italian and Japanese government debt to high corporate dollar debt in many emerging markets, and perhaps account for political support for trillion-dollar
deficits
in the US.
But Asia cannot be complacent: financial systems remain fragile; economies are burdened with high fiscal and current-account deficits; and Asia remains too heavily dependent on North American and European export markets, increasing its vulnerability to external shocks.
Widespread ideas about major public investments financed by bloating
deficits
should be forgotten.
There is the risk of overstimulation, with fiscal
deficits
fueling large current-account
deficits
and debts, which suddenly become unsustainable when money gets tight.
Whether India needs more institutions to control
deficits
and monitor the quality of its budgets is a question worthy of discussion.
In countries with pent-up demand for higher income and welfare, democratic fervor could lead to large budget deficits, excessive wage demands, and high inflation, ultimately resulting in severe economic crises.
Fiscal deficits, like unwanted pregnancies, are the unintended consequence of actions taken by more than one person who had other objectives in mind.
Argentina’s growing
deficits
led to inflation, devaluation, and recession.
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