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Fiscal in sentence

6883 examples of Fiscal in a sentence

In the United States, where markets, the judiciary, and regulation are highly developed, the imperative is not institutional reform, but policy reform – addressing the weak fiscal position, income and wealth inequities, unemployment, health care, and deteriorating physical infrastructure.
American democracy’s emphasis on short time horizons is costly, with tax cuts and increased welfare benefits giving rise to chronic fiscal deficits, with future generations forced to foot the bill for years of excessive consumption.
How they use monetary, fiscal, structural, institutional, and regulatory policies may differ, but each will ultimately be judged by how close he comes to achieving that goal.
Investment decisions are postponed, implying slower growth and an even more precarious fiscal position.
There’s a good chance that the monetary contraction will outweigh the fiscal stimulus, curbing the Obama growth spurt currently underway.
For the coming 2010 fiscal year, Obama’s budget calls for $755 billion in military spending, an amount that exceeds US budget spending in all other areas except so-called “mandatory” spending on social security, health care, interest payments on the national debt, and a few other items.
Its policymakers deny the eurozone’s crisis-ridden countries a more active fiscal policy; refuse to support a European investment agenda to generate demand and growth; have declared a fiscal surplus, rather than faster potential growth, as their primary domestic goal; and have begun turning against the European Central Bank (ECB) in the struggle against deflation and a credit crunch.
To be sure, Germany is justified in rejecting narrow-minded calls by France and Italy for unconditional fiscal expansion.
After all, fiscal stimulus can work only if it supports private investment and is accompanied by much more ambitious structural reforms – the kind of reforms that France and Italy are currently resisting.
Equally problematic is Germany’s focus on maintaining a fiscal surplus.
With projections for German GDP growth this year and next revised downward by more than 0.6 percentage points in the last few months, the government could be forced to initiate a pro-cyclical fiscal policy to achieve its goal, inducing even lower growth at home and throughout the eurozone.
Given that the German economy’s output gap remains negative, the government should be implementing expansionary fiscal policy that targets the country’s infrastructure weaknesses.
Europe needs a grand bargain, involving close coordination on structural reforms and fiscal and monetary policy.
And when counseling Asian countries on how to manage the crisis, the IMF erred – not for the last time, it should be noted – in the direction of too much fiscal austerity.
Indeed, among industrialized countries, hardly anyone is immune from fiscal woes.
The most important and well-known example is the eurozone’s fiscal rules, which supposedly limit candidate countries’ budget deficits to 3% of GDP, and their public debt to 60% of GDP.
Other countries have also adopted fiscal rules, most of which fail.
The Greek government, for example, projected in 2000 that its fiscal deficit would shrink below 2% of GDP one year in the future and below 1% of GDP two years into the future, and that the fiscal balance would swing to surplus three years into the future.
So, how can governments’ tendency to satisfy fiscal targets by wishful thinking be overcome?
The result is that, unlike in most industrialized countries, Chile’s official forecasts of growth and fiscal performance have not been overly optimistic, even during economic booms.
Thus, unlike many countries in the North, Chile took advantage of the 2002-2007 expansion to run substantial budget surpluses, which enabled it to loosen fiscal policy in the 2008-2009 recession.
Ethics and InfrastructureATHENS – Following the publication of the International Monetary Fund’s latest World Economic Outlook, high-profile economists like Olivier Blanchard, Larry Summers, Mario Monti, and Reza Moghadam have come out in favor of revising the eurozone’s fiscal rules to allow for public investment aimed at accelerating its economic recovery.
It is no secret that Germany is deeply committed to upholding strong fiscal rules within the currency union.
Only when fiscal austerity is implemented (or at least threatened), and a population is faced with rising unemployment and widespread economic misery, is a country motivated to pursue them.
But, whatever the merits of Germany’s commitment to “moral” economic behavior, its stance on fiscal discipline in the eurozone remains dubious.
After all, what the eurozone needs now is not to save its weaker economies from default or even to boost long-term growth; rather, it needs to recover lost output and employment, particularly in the southern countries – goals that neither fiscal austerity nor structural reforms can achieve on its own.
In fact, fiscal austerity directly undermines these objectives, depressing demand and discouraging growth.
Germany’s fiscal stance has left it more isolated than ever.
Not only has Italy’s new prime minister, Matteo Renzi, ramped up anti-austerity rhetoric;France plans again to delay meeting its obligation to reduce its deficit to below 3% of GDP within two years, and is calling for more flexibility in implementing the eurozone’s fiscal rules.
Given the current combination of a high fiscal multiplier – raised further by widespread overcapacity – and exceptionally low borrowing costs, all of these benefits could be gained without any net fiscal cost.
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