Example collocations logo

Fiscal in sentence

6883 examples of Fiscal in a sentence

To be sure, Germany accounts for the largest share of the eurozone’s external surplus, and three related arguments are typically used to justify the call for German authorities to use fiscal policy to address it.
Investment-oriented fiscal stimulus, then, would boost domestic investment and lower savings at the same time.
Moreover, a looser fiscal policy would stimulate German domestic demand, resulting in higher imports and a smaller current-account surplus.
And, finally, because Germany’s starting fiscal position is fundamentally strong, an increase in German imports would have positive spillover effects for the region.
More fundamentally, the typical case for German fiscal stimulus reflects economists’ failure to appreciate the potentially dominant role of financial flows on the balance of payments.
Given that extraordinarily loose monetary policies are causing unprecedented – but predictable – distortions in German and eurozone financial accounts, it seems ill-advised to suggest that German fiscal policy also be loosened to address the current-account imbalance.
Even if Germany did ease its fiscal policy, German investors would still be inclined to place funds abroad, so long as domestic interest rates remain exceptionally low, the ECB remains a willing buyer of high-priced securities, and yields are more attractive elsewhere.
When the ECB begins to alter course and international financial flows respond, there will be adjustments in the European and German balance of payments, and today’s large current-account surpluses will contract without German fiscal stimulus.
The Risky RichNEW YORK – Today’s swollen fiscal deficits and public debt are fueling concerns about sovereign risk in many advanced economies.
But, in large part – and with a few exceptions in Central and Eastern Europe – emerging-market economies improved their fiscal performance by reducing overall deficits, running large primary surpluses, lowering their stock of public debt-to-GDP ratios, and reducing the currency and maturity mismatches in their public debt.
Indeed, rating-agency downgrades, a widening of sovereign spreads, and failed public-debt auctions in countries like the United Kingdom, Greece, Ireland, and Spain provided a stark reminder last year that unless advanced economies begin to put their fiscal houses in order, investors, bond-market vigilantes, and rating agencies may turn from friend to foe.
The severe recession, combined with the financial crisis during 2008-2009, worsened developed countries’ fiscal positions, owing to stimulus spending, lower tax revenues, and backstopping and ring-fencing of their financial sectors.
The impact was greater in countries that had a history of structural fiscal problems, maintained loose fiscal policies, and ignored fiscal reforms during the boom years.
More ominously, monetization of these fiscal deficits is becoming a pattern in many advanced economies, as central banks have started to swell the monetary base via massive purchases of short- and long-term government paper.
Eventually, large monetized fiscal deficits will lead to a fiscal train wreck and/or a rise in inflation expectations that could sharply increase long-term government bond yields and crowd out a tentative and so far fragile economic recovery.
Fiscal stimulus is a tricky business.
But if monetized fiscal deficits are allowed to run, the increase in long-term yields will put a chokehold on growth.
Countries with weaker initial fiscal positions – such as Greece, the UK, Ireland, Spain, and Iceland – have been forced by the market to implement early fiscal consolidation.
So early fiscal consolidation can be expansionary on balance.
The euro’s recent sharp rise has made this competitiveness problem even more severe, reducing growth further and making fiscal imbalances even larger.
So the question is whether these euro-zone members will be willing to undergo painful fiscal consolidation and internal real depreciation through deflation and structural reforms in order to increase productivity growth and prevent an Argentine-style outcome: exit from the monetary union, devaluation, and default.
But investors will become increasingly cautious even about these countries if the necessary fiscal consolidation is delayed.
The US is a net debtor with an aging population, unfunded entitlement spending on social security and health care, an anemic economic recovery, and risks of continued monetization of the fiscal deficit.
The US also faces political constraints to fiscal consolidation: Americans are deluding themselves that they can enjoy European-style social spending while maintaining low tax rates, as under President Ronald Reagan.
If America’s Democrats lose in the mid-term elections this November, there is a risk of persistent fiscal deficits as Republicans veto tax increases while Democrats veto spending cuts.
Monetizing the fiscal deficits would then become the path of least resistance: running the printing presses is much easier than politically painful deficit reduction.
In part, India’s slowdown paradoxically reflects the substantial fiscal and monetary stimulus that its policymakers, like those in all major emerging markets, injected into its economy in the aftermath of the 2008 financial crisis.
For the most part, India’s current growth slowdown and its fiscal and current-account deficits are not structural problems.
By that point, Bush had rejected O’Neill’s and Christine Todd Whitman’s advice on environmental policy, just as he had rejected Alan Greenspan’s and O’Neill’s advice on fiscal policy, Powell’s and Condoleezza Rice’s advice on the importance of pushing forward on negotiations between Israel and Palestine, and – as we learned later – George Tenet’s and Richard Clarke’s advice about the importance of counterterrorism.
Many people think that 2012 will be the make-or-break year for Europe – either a quantum leap in European integration, with the creation of a fiscal union and the issuance of Eurobonds, or the eurozone’s disintegration, igniting the mother of all financial crises.
BackNext