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Stimulus in sentence

1793 examples of Stimulus in a sentence

For example, the 2009 stimulus package enacted by the Obama administration had many billions of dollars devoted to cancer research, though such research employs few people directly and is spent over a long time horizon – far beyond that of even a prolonged recovery.
In fact, by the end of last year, capital inflows had pushed the dollar up to levels not seen in more than a decade, owing to expectations of large-scale deregulation, tax cuts, and fiscal stimulus in the form of infrastructure spending and increased outlays for America’s supposedly “depleted” military.
Last year, Italian Prime Minister Mario Monti, with the backing of the four largest eurozone economies – Germany, France, Italy, and Spain – called for a €130 billion ($170 billion) stimulus package to improve competitiveness across the EU.
There is a way out of this trap, but only if we tilt the discussion about how to lower the debt/GDP ratio away from austerity – higher taxes and lower spending – toward debt-friendly stimulus: increasing taxes even more and raising government expenditure in the same proportion.
This kind of enlightened stimulus runs into strong prejudices.
Keynesian stimulus policy is habitually described as deficit spending, not tax-financed spending.
Stimulus by tax cuts might almost seem to be built on deception, for its effect on consumption and investment expenditure seems to require individuals to forget that they will be taxed later for public spending today, when the government repays the debt with interest.
Debt-friendly stimulus might be regarded as nothing more than a collective decision by all of us to spend more to jump-start the economy.
Simply put, Keynesian stimulus does not necessarily entail more government debt, as popular discourse seems continually to assume.
Rather, stimulus is about collective decisions to get aggregate spending back on track.
Balanced-budget stimulus was first advocated in the early 1940’s by William Salant, an economist in President Franklin Roosevelt’s administration, and by Paul Samuelson, then a young economics professor at the Massachusetts Institute of Technology.
They argued that, because any government stimulus implies higher taxes sooner or later, the increase might as well come immediately.
For the average person, the higher taxes do not mean lower after-tax income, because the stimulus will have the immediate effect of raising incomes.
Many believe that balanced-budget stimulus – tax increases at a time of economic distress – is politically impossible.
Some form of debt-friendly stimulus might ultimately appeal to voters if they could be convinced that raising taxes does not necessarily mean hardship or increased centralization of decision-making.
If and when people understand that it means the same average level of take-home pay after taxes, plus the benefits of more jobs and of the products of additional government expenditure (such as new highways), they may well wonder why they ever tried stimulus any other way.
A busted bubble led to a massive Keynesian stimulus that averted a much deeper recession, but that also fueled substantial budget deficits.
The end of the stimulus itself is contractionary.
And, with housing prices continuing to fall, GDP growth faltering, and unemployment remaining stubbornly high (one of six Americans who would like a full-time job still cannot get one), more stimulus, not austerity, is needed – for the sake of balancing the budget as well.
In view of the Trump administration’s political ineffectiveness, it is safe to assume that if there is any stimulus at all, it will be smaller than expected.
And its impact on nominal demand can in principle be calibrated: A small amount will produce a potentially useful stimulus to either output or the price level, whereas a very large amount will produce excessive inflation.
If Japan had followed Bernanke’s advice in 2003 and implemented a moderate money-financed stimulus, it would today have a slightly higher price level and a lower debt-to-GDP ratio.
Better still would be coordinated fiscal stimulus across northern Europe.
Under these circumstances, the only practical source of stimulus is the ECB.
Here, the launch of the European Economic Recovery Plan – the initiative for an EU-wide fiscal stimulus equivalent to 1.5% of GDP, endorsed by the European Heads of Government in December – constitutes a major step forward.
This must now be followed by closer budgetary monitoring, particularly given that fiscal stimulus measures, the economic downturn, and bank rescue plans will take a toll on public finances.
In July, Bernanke attempted to calm investors with remarks signaling that, amid inadequate employment gains and persistently low inflation, the Fed would not abandon monetary stimulus anytime soon.
But monetary stimulus is often in reality just as selective as bailouts.
Second, Krugman’s claim that a vastly larger fiscal stimulus would have generated a more rapid economic recovery in the US depends entirely on conjecture.
And, indeed, as that stimulus wanes, the impact of inadequate advanced-country demand on Chinese growth is becoming increasingly apparent.
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