Deficits
in sentence
2171 examples of Deficits in a sentence
This idea has also given rise to a very strong presumption that if an economy as a whole is under-saving and under-investing, the government ought to help to correct this problem by running surpluses, not make it worse by running
deficits
that drain the pool of private savings available to fund investment.
Of course, governments need to run
deficits
in depressions in order to stimulate demand and stem rising unemployment.
But the rule is that governments should run surpluses and not deficits, so various American presidents’ economic advisers have been advocates of aiming for budget surpluses except in times of slack demand and threatening depression.
Some of Reagan’s advisers sincerely did not believe that the tax cuts of the early 1980’s would generate the large
deficits
that they did (Beryl Sprinkel and Lawrence Kudlow come to mind).
Those of us who served in the Clinton administration and worked hard to put America’s finances in order and turn
deficits
into surpluses are keenly aware that, after eight years of the George W. Bush administration, things look worse than when we started back in 1993.
Fiscal
deficits
so large that they put the debt-to-GDP ratio on an explosive upward trend do not merely act as a drag on long-term economic growth; they also create the possibility that at any moment the economy might face an immediate macroeconomic and financial disaster.
A sluggish economy depresses tax revenues and increases social expenditures, leading to high public
deficits.
Because a big slice of these
deficits
must be financed through borrowing at high interest rates, a growing public debt relative to income results.
Beleaguered by pressures to finance their deficits, governments try to create conditions favorable to lenders by keeping inflation rates low and debt to income ratios stable.
A restrictive budgetary policy lowers public expenditure, reducing public
deficits
and thus reliance on financial markets for government finance.
Russia’s problem was debt and deficits, not the exchange rate.
Like many other emerging economies and new democracies, Russia has trouble limiting its budget
deficits.
Also unsurprisingly, budget
deficits
and record interest rates combined into a snowball of debt.
Any attempt to undermine its independence or bring it back to financing budget
deficits
would be fatal.
By contrast, running persistently large current-account
deficits
creates vulnerabilities and often leads to disruptions, as external financial conditions change.
As long as this internal divergence persists, the euro crisis cannot be fully resolved, because current-account
deficits
and/or slow growth will continue to stalk the southern European countries, perpetuating worries about sovereign debt and commercial banks.
As these countries posted current-account deficits, northern European countries accumulated current-account surpluses, exposing a widening competitiveness gap.
Normally, by decreasing prices relative to their more fiscally sound neighbors, struggling countries can boost exports, thereby reducing their current-account
deficits.
Before 2010, it was almost entirely based on surveillance of budgetary deficits, which was conducted within the framework of the Stability and Growth Pact (a procedure for broad economic surveillance existed as well, but lacked political traction).
But the flip side of China's surplus was huge credit-fueled
deficits
elsewhere, particularly in the US.
Nothing works as potently to inflame protectionist sentiment as large trade
deficits.
But, even under floating exchange rates, the US retained an advantage: given that the dollar remained the key global reserve currency, the US could finance large external
deficits
at very favorable rates.
The US must choose between job creation, which requires a more competitive exchange rate, and cheap financing of its external and fiscal
deficits.
Countries with a stronger fiscal position (that is, smaller structural deficits) should be encouraged to adopt more expansionary policies in order to contribute to lifting overall demand.
America’s Fiscal EyewashFAIRFAX, VIRGINIA – At their recent national conventions, America’s two main political parties devoted a lot of time on the podium to addressing how they would reduce the country’s annual
deficits
and national debt.
Indeed, the United States has run four straight trillion-dollar deficits, driving the national debt to a record $16 trillion, and threatening to weaken the dollar and derail the global economic recovery.
Clinton’s administration showed that a balanced federal budget, even with higher taxes, supports stronger economic growth than lower taxes with vast
deficits.
In a monetary union, discrepancies in wage growth relative to productivity gains – that is, unit labor costs – will result in a chronic accumulation of trade surpluses or
deficits.
Lacking in domestic savings and wanting to grow, the US must import surplus savings from abroad, and run massive current-account
deficits
to attract the foreign capital.
They apparently assumed that the rest of Europe would overlook continuing high deficits, and that, as eurozone members, the market would consider their debt to be just like German bunds, though issued by friendly and welcoming people in an agreeable climate, and with a glass of ouzo on the side.
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