Deficits
in sentence
2171 examples of Deficits in a sentence
In an era of still-large US budget
deficits
– likely to go even higher in the aftermath of Trump administration tax cuts and spending initiatives – the lack of demand for Treasuries by the largest foreign owner could well put upward pressure on borrowing costs.
Lacking in saving and wanting to consume and grow, the US must import surplus saving from abroad to close the gap, forcing it to run massive current-account and trade
deficits
with countries like China to attract the foreign capital.
Fostering policies that encourage an economy to squander its saving and live beyond its means makes trade
deficits
a given – as are the seemingly unfair trading practices that may come with this Faustian bargain for foreign capital.
The US ran trade
deficits
with 101 countries in 2016 – a multilateral external imbalance rooted in America’s chronic domestic saving problem.
Ironically, with the Trump administration’s policies likely to lead to larger budget
deficits
that put national saving under additional downward pressure, the need for Chinese and other foreign capital will actually intensify and the codependency trap will only close more tightly.
Macroeconomic policy has not induced economic growth; but - and this is very important - it has not hindered it, either: The smooth combination between a reduction of budget
deficits
and a more expansionary monetary policy will go on record as one of the masterpieces of the genre.
Ukraine’s budget and external
deficits
had already become unsustainable and needed radical restructuring, so Russian aggression was enough to push the economy over the edge.
Anchoring its currency to the dollar, the Chinese built up a huge stake in US Treasuries, which helped America fund record budget
deficits.
At the root of the problem are the structural trade and current-account imbalances that arise from the so-called Triffin dilemma: in order to meet global demand for the US dollar as a reserve currency, the United States must run persistent current-account
deficits
with the rest of the world.
But that privilege can erode the country’s fiscal discipline, as it has in recent years, resulting in high federal
deficits
($833 billion, or 4.2% of GDP, in2018) and growing federal debt ($21 trillion, or 104% of GDP, as of March).
Allies are seen as an answer to America's twin credibility and legitimacy
deficits
in its occupation of Iraq.
For example, both political parties in the US now accept the notion that when a country is in a recession, it is not only permissible, but even desirable , to run
deficits.
Still, all indicators show that the candidate countries are closely integrated financially with the EU, permitting them to run higher current account
deficits
than they could otherwise.
The list includes India, Indonesia, Brazil, Turkey, and South Africa – dubbed the “Fragile Five,” because all have twin fiscal and current-account deficits, falling growth rates, above-target inflation, and political uncertainty from upcoming legislative and/or presidential elections this year.
Indeed, the failure of many emerging-market governments to tighten macroeconomic policy sufficiently has led to another round of currency depreciation, which risks feeding into higher inflation and jeopardizing these countries ability to finance twin fiscal and external
deficits.
The bailout fund created last year by the International Monetary Fund and the European Central Bank to enable Greece and other distressed sovereigns, like Ireland and now Portugal, does exactly that, but on the condition that they implement austerity programs to eliminate their
deficits
over a short period of time.
Or, to be precise, a carbon tax could substitute for the huge array of taxes that is eventually coming anyway in the wake of massive government budget
deficits.
In an era of outsize government
deficits
and subpar household saving, that may be America’s toughest challenge of all.
Fiscal policies should be left with the member states, albeit under the constraints imposed by the EC Treaty (the coordination procedures of Article 99 and the excessive
deficits
procedure of Article 104).
Soon the rigors of global finance will force these countries onto the same track as everyone else because public sector
deficits
cannot cover the bill for large numbers of people who won’t work.
The potential future clash between larger fiscal
deficits
and a low household saving rate could have powerful negative effects on both Japan and the global economy.
Higher deficits, moreover, would cause the ratio of debt to GDP to rise from its already high level, which implies greater debt-service costs and, therefore, even larger
deficits.
This vicious spiral of rising
deficits
and debt would be likely to push interest rates even higher, causing the spiral to accelerate.
The larger
deficits
would also eliminate all of the excess saving that now underpins the current-account surplus.
Japan’s ability to sustain high fiscal deficits, low interest rates, and net capital exports has been possible because of its high private saving rate, which has kept national saving positive.
But, with the current low rate of household saving, the cycle of rising
deficits
and debt will soon make national saving negative.
The result in Japan would then be rising real interest rates as the low private saving rate runs head-on into large fiscal
deficits.
German economists, in contrast to their American colleagues, never abandoned Keynesian policies as a means to combat demand
deficits.
Most are seeking ways to contain public indebtedness, trim deficits, and cut spending without making their poorer citizens worse off.
Yet his proposals are meeting strong opposition from fiscally conservative Democrats as well as from Republicans, owing to their potential impact on future fiscal
deficits.
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