Deficits
in sentence
2171 examples of Deficits in a sentence
American foreign policy starts at home, and that means reining in budget
deficits
over the long term, reviving economic growth and job creation in the short term, and addressing the country’s deteriorating infrastructure.
The US must get back into shape to face tomorrow’s challenges, and that means restoring economic growth, reducing deficits, and improving infrastructure.
The other scenario is that US budget
deficits
continue to run out of control.
Moreover, India has developed a tendency for chronic inflation, owing to an unhappy combination of supply bottlenecks (caused by poor infrastructure) and excessive demand (thanks to persistent public deficits).
Budget
deficits
offered what appeared to be a free lunch, as the resulting inflation eroded the real value of public debt, while the government had privileged access to private savings at near-zero real interest rates.
Subsidies combined with a bloated civil service (there are over 2 million state employees) generate chronic budget deficits, estimated at 5% of GDP in 1998-99.
Many forces behind the boom of the 1990’s, including advances in technology, were set in motion before Bill Clinton took office (just as the legacy of President George W. Bush’s
deficits
will be felt long after he leaves).
But soaring
deficits
did not return the economy to full employment, so the Fed did what it had to do – cut interest rates.
Greenspan was as enthusiastic for a policy that led to soaring
deficits
as any politician; but the fig leaf of being “above politics” gave credence to that policy, engendering support from some who otherwise would have questioned its economic wisdom.
Unemployment rates would converge, as would other important macroeconomic variables, such as unit labor costs, productivity, and fiscal
deficits
and government debt.
Nor could we find any convergence regarding government
deficits
and debt.
(The situation is even worse for government deficits.)
While this would not cross the EU’s 3%-of-GDP ceiling on budget deficits, it is considerably more than the 1.6% that the finance minister informally agreed with the EU over the summer.
In this respect, the eurozone compares favorably with other large currency areas, such as the United States or, closer to home, the United Kingdom, which run external
deficits
and thus depend on continuing inflows of capital.
Moreover, there is no significant danger of an increase, as wage demands remain depressed and the European Central Bank will face little pressure to finance deficits, which are low and projected to disappear over the next few years.
The problem is the internal distribution of savings and financial investments: although the eurozone has enough savings to finance all of the deficits, some countries struggle, because savings no longer flow across borders.
In the years before the beginning of the financial crisis, current-account
deficits
and bubbly asset prices pushed annual GDP growth up to 4.3%.
Output growth in the US remains anemic, and the economy continues to face three significant deficits: a jobs deficit, an investment deficit, and a long-run fiscal deficit, none of which is likely to be addressed in an election year.
Policymakers should pair fiscal measures to ameliorate the jobs and investment
deficits
now with a multi-year plan to reduce the long-run fiscal deficit gradually.
Indeed, enactment of such a package could bolster output and employment growth by easing investor concerns about future
deficits
and strengthening consumer and business confidence.
Talk in Washington portends a lurch away from the “sound finance” of the 1990s – the increased tax rates and tighter grip on spending that replaced budget
deficits
with budget surpluses.
In Europe, large
deficits
and exploding debt-to-GDP ratios have alarmed creditors and provoked political tension.
Moreover, once granted entry into the eurozone, no country needed to worry about being expelled, so incentives to keep
deficits
low evaporated.
In light of looming
deficits
for America’s Social Security and Medicare programs, such changes in the tax code should ideally be revenue-neutral.
Large fiscal
deficits
crowded out private investment.
Krugman’s presentation at the IMF conference was as surprising as the others: concerns about US fiscal
deficits
and debt are misplaced even in the longer term.
Before Thatcher’s premiership, Britain was widely considered the “sick man of Europe” – afflicted by stifling regulation, high unemployment, constant strikes, and chronic budget
deficits.
Germany likes to blame the victim, pointing to Greece’s profligacy and the debt and
deficits
elsewhere.
So the crisis caused the
deficits
and debts, not the other way around.
Is it sustained economic decline, high and long-term unemployment, poverty, rampant inflation, a precipitous fall in the exchange rate, fiscal deficits, high borrowing costs, and political dysfunction?
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