Deficits
in sentence
2171 examples of Deficits in a sentence
That was the case in the run-up to the financial crisis of 2008-2009, when global saving imbalances, as measured by the disparities between countries with current-account
deficits
and surpluses, hit a modern record.
Financial markets’ sudden reappraisal of sovereign risk has now put euro-area governments under considerable pressure to reduce their
deficits.
First, governments should bring fiscal
deficits
down to below 3% of GDP, in line with what has been agreed by the European Council.
Second, to set high debt ratios on a diminishing path, governments will have to aim at reducing
deficits
further in line with their medium-term budgetary objectives.
National governments were made subject - under the excessive-deficit procedure - to the twin constraints that fiscal
deficits
should not exceed 3% of GDP and government debt should remain below 60% of GDP (or at least tend towards that value).
I would not listen to those who advocate excluding investment from fiscal deficits: this would only offer new incentives for creative accounting and unsustainable accumulation of debt.
Instead, the emphasis should shift from annual
deficits
to debt sustainability.
The Commission's powers to initiate action when there is a risk of excessive
deficits
should be strengthened - provided, of course, that the Commission never again forgets that surveillance of national policies is a task that requires political judgment and cannot be left to accountants and lawyers.
Moreover, current-account
deficits
piled up into substantial private-sector foreign debt, while public finances were in good order everywhere but Socialist-led Hungary.
But if Obama presses Hu to revalue the Chinese currency as the best way to achieve recalibration, Hu is likely to push back, asking Obama what he intends to do to stem the massive US
deficits
that will cause inflation and reduce the value of investments by Chinese and others in American securities.
But there is a catch: in shifting to a more consumption-led dynamic, China will reduce its surplus saving and have less left over to fund the ongoing saving
deficits
of countries like the US.
Likewise, the eurozone’s recovery from the 2008 financial crisis has been held back by strict fiscal rules that limit member countries’ fiscal
deficits
to 3% of GDP.
When government
deficits
are lower, investing in government debt becomes more attractive.
What is required is a debate with the US, for the strong dollar has led to an anomalous situation: the world's richest country seems unable to live within its means and must continually borrow hundreds of billions of dollars from abroad to finance its huge trade
deficits.
As a result, public
deficits
are shooting up everywhere.
Nearly all European Union countries will violate the Stability and Growth Pact’s 3%-of-GDP cap on fiscal
deficits
in 2009, and some of them will have
deficits
at or above 10% of GDP, notably Spain (10%), the United Kingdom (14%), and Ireland (16%).
Orderly adjustment requires lower domestic demand in over-spending countries with large current-account
deficits
and lower trade surpluses in over-saving countries via nominal and real currency appreciation.
Meanwhile, fiscal policy is constrained by the rise of
deficits
and debts, bond vigilantes, and new fiscal rules in Europe.
As a result of these annual deficits, the federal government’s debt will rise from $16 trillion now to $28 trillion in 2028.
The interest rate on government debt would therefore rise substantially, further increasing the annual
deficits.
What can be done to reduce the federal government’s
deficits
and stem the growth of the debt ratio?
Better indicators would have revealed the highly negative and possibly long-lasting effects of the deep post-2008 downturn on productivity and wellbeing, in which case policymakers might not have been so enamored of austerity, which lowered fiscal deficits, but reduced national wealth, properly measured, even more.
But achieving these laudable goals will be expensive, coming on top of the giant budget
deficits
the US is running to counter the financial crisis.
Countries that were overspending, under-saving, and running current-account
deficits
have been forced by markets to spend less and save more.
Not surprisingly, their trade
deficits
have been shrinking.
In either case, the US government, hamstrung by already-wide deficits, may feel powerless to respond with countercyclical fiscal policy.
Historically, in fact, most advanced economies have lived with far higher fiscal
deficits
than they have today, and not only during wartime.
Such
deficits
have financed strong, sustained, and inclusive growth not only in their own economies, but also abroad – as with the United States’ Marshall Plan, so central to European post-war reconstruction and recovery.
The US has run
deficits
that high only during World War II and the Great Recession of 2008-2009, when a huge stimulus package was implemented to spur recovery.
Once the Left accepts that the welfare state must be cut and
deficits
reduced, it is more likely to deliver lasting results than the Right.
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