Deficits
in sentence
2171 examples of Deficits in a sentence
It keeps room for interest rates to be raised, avoids large
deficits
and high private foreign debt, and does not gamble the reserves away.
So too the idea that
deficits
are okay when they reflect investment, or that large borrowing is no problem if it is private.
The rules need to impose limits on deficits, spending, and debt, and require transparency so that the public knows what’s going on.
The US, with the world’s largest
deficits
and debt, is the biggest beneficiary of cheap financing.
In Europe, despite the large external
deficits
in some of the European Union’s southern and eastern members at the outset of the crisis and the fetters implied by the euro, the fall in GDP was held to less than 10% in hard-hit Ireland, Italy, Portugal and Spain.
Lately, concerns about America’s unsustainable fiscal
deficits
have, likewise, resulted in ugly political infighting, almost leading to a government shutdown.
First, the problems of the eurozone periphery are in some cases problems of actual insolvency, not illiquidity: large and rising public and private
deficits
and debt; damaged financial systems that need to be cleaned up and recapitalized; massive loss of competitiveness; lack of economic growth; and rising unemployment.
Externally driven changes in financial variables have thus become a source of serious risk, especially in countries, like Argentina, with a history of economic mismanagement, large current account deficits, other financial imbalances, and a habit of pursuing too many objectives with too few instruments.
Extrapolating over the coming decade, the numbers would approach $5 trillion, an amount vastly larger than what both President Barack Obama’s administration and his Republican opponents seem willing to cut from further government
deficits.
Instead, Bush agreed to double down on the Reagan-era policies that had produced record peacetime
deficits.
They cut taxes and raised spending rapidly, resulting in the return of record
deficits.
Foreign investors are willing to live with the resulting current-account deficits, but only up to a point.
It took only a few words from Fed Chairman Ben Bernanke last May – announcing the eventual end of quantitative easing – for markets to lose confidence in emerging economies with current-account
deficits
near or above 4% of GDP.
In Europe, meanwhile, the consensus was embodied in the European Union's Growth and Stability Pact and made operational in the rigid Maastricht criteria that capped government budget
deficits
at 3% of GDP.
A new wave of
deficits
and exchange-rate instability would thus call into question the most fundamental and beneficial legacy of the 1990s: the major push for trade opening and liberalization.
This pact would monitor current-account imbalances and penalize excessive
deficits
or surpluses in the external account.
Monitoring external balances can be an effective tool to measure future default risks, since sustained current-account
deficits
lead to a growth in net foreign debt.
Austerity policies in Europe threaten to backfire, causing enduring harm to growth prospects and thus stoking unemployment and budget
deficits.
Trump’s favored fiscal and trade policies will crowd out private investment, reduce foreign direct investment in the US, and produce larger external
deficits.
The main concern is that left-wing politicians will implement populist policies that will generate large fiscal deficits, high inflation, and, eventually, currency collapses.
The first casualty is bound to be the European Stability and Growth Pact, with its plethora of fiscal rules, monitoring procedures, and eventual sanctions for excessive
deficits.
Perhaps emerging economies with improved prospects will attract higher capital flows, financing larger trade
deficits
as capital goods are purchased directly or indirectly.
It calls for monetary financing of fiscal
deficits
(now called “people’s quantitative easing”), nationalization of industry (beginning with the railroads), and an end to competition and the private provision of public services.
But it does not follow that, as Corbynistas believe, large budget
deficits
and debts are harmless.
In a March 2005 speech, Bernanke argued that this “glut” helps explain several features of the American economy, possibly including the enormous fiscal and trade
deficits.
Indeed, the painful adjustments that southern European countries (and Ireland) have endured have led to substantially smaller external
deficits
and declining unit labor costs.
Overt Monetary Finance and Crisis ManagementBill White’s commentary responds to my argument, set out in a lecture at Cass Business School, that overt monetary finance (OMF) of increased fiscal
deficits
should not be a taboo policy option.
We also agree on the need for a radical change to the financial-policy regime to promote stability and reduce the risk of future crises But, while White raises valid issues concerning the separate issue of how to respond to the post-crisis mess of debt overhang, deleveraging, and deflationary pressures, he does not undermine my case for considering the option of using OMF to fund increased fiscal
deficits.
But if
deficits
are funded by interest-bearing debt, leverage simply shifts from the private to the public sector, raising questions about long-term public-debt sustainability.
Using OMF to fund increased fiscal
deficits
is always an available option, and, in extreme circumstances, it should be deployed.
Back
Next
Related words
Fiscal
Budget
Countries
Large
Trade
Growth
Their
Government
Would
Which
Public
Economic
Rates
Spending
Surpluses
Inflation
Economy
Governments
Interest
External