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Deficits in sentence

2171 examples of Deficits in a sentence

Economists who study populism generally draw lessons from Latin America, where past episodes of nationalist over-promising have quickly led to massive fiscal deficits that could not be financed.
Before 2008, China’s massive surpluses were matched by unsustainable credit-fueled deficits in developed economies.
Macron and his economic team are full of promising ideas, and he will have a huge majority in the National Assembly to implement them (though it will help if the Germans give him leeway on budget deficits in exchange for reform).
One extreme is the simplistic Keynesian remedy that assumes that government deficits don’t matter when the economy is in deep recession; indeed, the bigger the better.
They see lingering post-financial-crisis unemployment as a compelling justification for much more aggressive fiscal expansion, even in countries already running massive deficits, such as the US and the United Kingdom.
It is quite right to argue that governments should aim only to balance their budgets over the business cycle, running surpluses during booms and deficits when economic activity is weak.
With many of today’s advanced economies near or approaching the 90%-of-GDP level that loosely marks high-debt periods, expanding today’s already large deficits is a risky proposition, not the cost-free strategy that simplistic Keynesians advocate.
Surpluses are applied to repaying debt, and borrowing finances deficits.
The oil fund accumulates surpluses and incurs deficits when the price of oil is above or below the average.
Surpluses are used to pay off debt, and the deficits are financed by acquiring debt, leaving the debt-GDP ratio constant over the cycle.
The US remains stuck in the time-worn mindset of a deficit saver with massive multilateral trade deficits and the need to draw freely on global surplus saving to support economic growth.
The large tax cut enacted at the end of 2017 will expand the US federal budget deficit by $1.5 trillion over the next decade, pushing domestic saving even lower – an outcome that will lead to even wider trade deficits.
Yet protectionism in the face of widening trade deficits spells nothing but trouble for frothy financial markets and a saving-short US economy.
If the growth trend is one percentage point lower – a distinct possibility in an era of protracted consumption weakness – budget deficits would be a significantly higher.
Indeed, a CBO rule of thumb equates a sustained one-percentage-point shortfall in real GDP growth with budget deficits that are roughly $3 trillion larger over a ten-year period.
While no two financial crises are identical, all tend to share some telltale symptoms: a significant slowdown in economic growth and exports, the unwinding of asset-price booms, growing current-account and fiscal deficits, rising leverage, and a reduction or outright reversal in capital inflows.
And, until Greece’s crisis in 2010, the country’s fiscal deficits and debt burden were thought to be much smaller than they were, thanks to the use of financial derivatives and creative accounting by the Greek government.
These countries will go through a slump that will reduce their inflation (perhaps bringing them close to deflation) improve their competitiveness, and reduce their current-account deficits.
Europe's Overdue ReformationWar and its huge cost; the falling dollar; mounting trade and budget deficits; the chicanery that hollowed out companies like Enron and WorldCom; the bursting of the high-tech bubble: capitalism American-style is both under strain and under a cloud.
Unaffordable tax cuts and wars, a major recession, and soaring health-care costs – fueled in part by the commitment of George W. Bush’s administration to giving drug companies free rein in setting prices, even with government money at stake – quickly transformed a huge surplus into record peacetime deficits.
Trump hates such “unfair” trade deficits, and has pledged to eliminate them.
So it is possible to reduce deficits and keep the debt/GDP ratio in check – provided that the economy does not start out with large imbalances, and that the financial system is working properly.
Thus, the key variable for countries that had large current-account deficits, and thus are burdened today with high foreign-debt levels, is not the debt/GDP ratio, but the foreign debt/exports ratio (together with the growth prospects for exports).
During the boom years, when countries like Greece, Portugal, and Spain were running ever-larger external deficits, their exports did not grow quickly, so their foreign debt/exports ratios deteriorated steadily, reaching levels that are usually regarded as a warning signal.
For example, for Spain and Portugal, the sum of past deficits relative to annual exports reached 300% and 400%, respectively, in 2009, whereas a 250% ratio is typically regarded as the threshold at which external-financing problems can arise.
Even Italy, whose external deficits have remained small, will soon record a current-account surplus.
While fiscal austerity may be necessary in countries with large deficits and debt, raising taxes and cutting government spending may make the recession and deflation worse.
On the other hand, if policymakers maintain the stimulus for too long, runaway fiscal deficits may lead to a sovereign debt crisis (markets are already punishing fiscally undisciplined countries with larger sovereign spreads).
Or, if these deficits are monetized, high inflation may force up long-term interest rates and again choke off economic recovery.
The problem is compounded by the fact that, for the last decade, the US and other deficit countries – including the United Kingdom, Spain, Greece, Portugal, Ireland, Iceland, Dubai, and Australia – have been consumers of first and last resort, spending more than their income and running current-account deficits.
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