Deficits
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2171 examples of Deficits in a sentence
After all, countries are running large fiscal
deficits
and central banks have bought government debt, expanding the monetary base.
In a lecture in October 2012, Mervyn King, the former governor of the Bank of England, urged proponents of OMF to be clear that they are proposing increased fiscal
deficits.
The overt commitment to reversal thus logically invites a Ricardian-equivalent offset to the stimulative effect of current fiscal
deficits.
Indeed, those links were central to the arguments advanced by economists like Simons, Fisher, and Friedman, who, surveying the wreckage produced by excessive credit creation in the 1920’s, proposed both OMF of fiscal
deficits
and a system of 100% reserve banking.
But Fisher quite explicitly identified the absence of interest payments on
deficits
financed by permanent monetary expansion as one of the benefits of 100% reserve banking and OMF.
And yet it is not clear that White, sharing my concerns about the impact of funded fiscal
deficits
or of ultra-easy monetary policy, has convincing alternative proposals that could return us to shore.
So the Asians are coming: as markets, as states, as consumers, as financiers (Asian central banks, for example, are responsible for financing America’s whopping budget deficits), as scientists and engineers, and as corporations.
Indeed, despite perpetual talk of an overheating economy, China’s exports and retail sales are soaring, and its foreign-exchange reserves now approach $2.5 trillion, even as America’s fiscal and trade
deficits
remain alarming.
The current spotlight may be on Europe’s financial woes, but the bigger picture for China is that America’s chronic
deficits
and indebtedness epitomize its relative decline.
This is an economic fact of fundamental significance, for the real long-term interest rate is a direct measure of the cost of borrowing to conduct business, launch new enterprises, or expand existing ones – and its levels now fly in the face of all the talk about the need to slash government
deficits.
In the last two years,
deficits
and debt have stabilized.
The same logic can be applied to the US economy, but in the opposite way: even if the US wants to consume a lot and does not save, it may not run trade
deficits
if it does not invest much.
But, in both cases, immediately eliminating America’s bilateral
deficits
would simply make Americans poorer.
It would be no different than if Greece suddenly eliminated its large
deficits
with the rest of Europe.
In the past, US policymakers have tried to spur domestic job creation by getting the surplus countries to run budget
deficits
or loosen their monetary policy, so that they could grow faster and buy more American goods.
At the same time, policymakers have turned on all the tools of modern macroeconomic stimulus to full blast, with huge fiscal
deficits
and near zero policy interest rates.
But if the governments have shown they will spare no expense to backstop the financial system, who is to backstop governments, particularly with so many running out-sized
deficits
at the same time.
Many countries - including the Czech Republic, Hungary, and Poland - run large budget
deficits
and need to implement medium-term reforms to make their pension systems sustainable and to overhaul overly generous social security systems.
Powerful resistance to higher taxes, coupled with a growing list of urgent unmet needs, has led to chronic under-performance by the US government and an increasingly dangerous level of budget
deficits
and government debt.
The budget
deficits
could continue to prevent any meaningful action in areas of critical need.
The Trump DeficitCAMBRIDGE – It is a post-financial-crisis myth that austerity-minded conservative governments always favor fiscal prudence, while redistribution-oriented progressives view large
deficits
as the world’s biggest free lunch.
This simplistic perspective, while perhaps containing a grain of truth, badly misses the true underlying political economy of
deficits.
So expect US President-elect Donald Trump’s administration, conservative or not, to make aggressive use of budget
deficits
to fund its priorities for taxes and spending.
The most accurate framework for thinking about government budget
deficits
in democracies was proposed in the late 1980s by the Italian scholars Alberto Alesina and Guido Tabellini, more or less simultaneously with two Swedes, Torsten Persson and Lars Svensson.
Back in the 1980s, conservative hero Ronald Reagan was willing to tolerate enormous
deficits
to fund his ambitious tax-cutting plans, and he did so in an era when borrowing wasn’t cheap.
In the early 2000s, another Republican president, George W. Bush, essentially followed Reagan’s playbook, again slashing taxes and sending
deficits
soaring.
In 2012, at the height of the standoff between the Republican-controlled Congress and Democratic President Barack Obama over
deficits
and the national debt, Republican presidential candidate Mitt Romney proffered an economic plan that featured eye-popping
deficits
to finance tax cuts and higher military spending.
What, then, prevents
deficits
from spiraling upward as parties alternate power and borrow to help their supporters?
But even in the US and the UK, budget
deficits
are not sterile and neutral forms of economic stimulus, as in the classroom Keynesian model.
Instead,
deficits
are almost always the product of fierce political infighting over fiscal priorities.
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