In defense of the New Deal: Yes we can, therefore I must act a
... targeting jobs creation were an obstacle to a sound recovery. The historical proof is that american economy could not go back to its pre-crisis employment level before it turned to a war-led economy in the last months of 1938. This extreme revision is put forward with some variations by Fishback (20 ...
... targeting jobs creation were an obstacle to a sound recovery. The historical proof is that american economy could not go back to its pre-crisis employment level before it turned to a war-led economy in the last months of 1938. This extreme revision is put forward with some variations by Fishback (20 ...
Chapter 26. Fiscal Policy: A Summing Up
... The theory underlying the concept of cyclically adjusted deficit is simple; the practice of it has proven tricky. First, establish how much lower the deficit would be if output were, say, 1% higher. Second, assess how far output is from its natural level: A reliable rule of thumb is that a 1% decr ...
... The theory underlying the concept of cyclically adjusted deficit is simple; the practice of it has proven tricky. First, establish how much lower the deficit would be if output were, say, 1% higher. Second, assess how far output is from its natural level: A reliable rule of thumb is that a 1% decr ...
View PDF - The Earth Institute
... has recently been stressed in an important paper by Alesina and Tabellini (1987). They emphasize that when political power alternates randomly between competing political parties, each government will be tempted to leave a legacy of high debt for its successor, whose spending priorities it is not li ...
... has recently been stressed in an important paper by Alesina and Tabellini (1987). They emphasize that when political power alternates randomly between competing political parties, each government will be tempted to leave a legacy of high debt for its successor, whose spending priorities it is not li ...
Validity of Twin Deficit Hypothesis: Evidence from Asian Developing
... Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012. After necessary diagnostic checks, different estimation techniques such as random effects (e.g., FGLS), fixe ...
... Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012. After necessary diagnostic checks, different estimation techniques such as random effects (e.g., FGLS), fixe ...
Chapter 4 D : M
... Three key fiscal parameters - revenue, fiscal and primary deficits - indicate the extent of overall fiscal imbalances in the Finances of the Union or State Government during a specified period. The revenue deficit of the Union Government which exhibited a declining trend during the first three years ...
... Three key fiscal parameters - revenue, fiscal and primary deficits - indicate the extent of overall fiscal imbalances in the Finances of the Union or State Government during a specified period. The revenue deficit of the Union Government which exhibited a declining trend during the first three years ...
A New Paradigm for Macroeconomic Policy Philip Arestis, University
... put into practice (and thereby undermine arguments that ‘functional finance’ promotes profligate governments) through external evaluation on whether the constraint is being adhered to. In effect, budget deficits would be judged as ‘excessive’ if they were seeking to push the level of economic activi ...
... put into practice (and thereby undermine arguments that ‘functional finance’ promotes profligate governments) through external evaluation on whether the constraint is being adhered to. In effect, budget deficits would be judged as ‘excessive’ if they were seeking to push the level of economic activi ...
Government Debt
... While the 10-year horizon looked rosy, the longer-term fiscal picture was more troublesome.The problem was demographic.Advances in medical technology have been increasing life expectancy, while improvements in birth-control techniques and changing social norms have reduced the number of children peo ...
... While the 10-year horizon looked rosy, the longer-term fiscal picture was more troublesome.The problem was demographic.Advances in medical technology have been increasing life expectancy, while improvements in birth-control techniques and changing social norms have reduced the number of children peo ...
Introduction Learning Objectives
... outside the United States increases. • Foreign residents, businesses and governments hold nearly 50% of the net public debt. • Thus, we do not owe the debt just to ourselves. ...
... outside the United States increases. • Foreign residents, businesses and governments hold nearly 50% of the net public debt. • Thus, we do not owe the debt just to ourselves. ...
Debt Dynamics, Fiscal Deficit, and Stability in Government
... The debt and interest payments of the subnational governments have been increasing, although the rates have declined slowly in recent years in India. If fiscal deficits follow a course of a self-continuing rise in the debt to gross domestic product (GDP) ratio affecting adversely the growth rate, th ...
... The debt and interest payments of the subnational governments have been increasing, although the rates have declined slowly in recent years in India. If fiscal deficits follow a course of a self-continuing rise in the debt to gross domestic product (GDP) ratio affecting adversely the growth rate, th ...
Two View ofthe Effects of Governemnt Budget Deficits in the 1980s
... the other’ hand, r’educe private saving, given the interest tate and GM’. The higher tax reduces disposable income arid therefore both consumption expenditur’es and private saving. The reduction in private saving is less than the tax increase, because private expenditures on goods and services also ...
... the other’ hand, r’educe private saving, given the interest tate and GM’. The higher tax reduces disposable income arid therefore both consumption expenditur’es and private saving. The reduction in private saving is less than the tax increase, because private expenditures on goods and services also ...
The case for fiscal policy
... necessary to keep spending down to prevent inflation. The interest can be paid by borrowing still more" (p. 356). Lerner (1943) summarized the answers to arguments against deficit spending by saying that the national debt does not have to keep on increasing, and that even if it does the interest doe ...
... necessary to keep spending down to prevent inflation. The interest can be paid by borrowing still more" (p. 356). Lerner (1943) summarized the answers to arguments against deficit spending by saying that the national debt does not have to keep on increasing, and that even if it does the interest doe ...
Budget Balance and Trade Balance: Kin or Strangers A Case
... Equation (3) states that the government budget balance comprises the trade balance and the excess of private investment over private savings (I – S). It provides the fundamentals for the Keynesian proposition of the ‘twin deficits’, i.e. the budget deficit and the trade deficit are closely linked. T ...
... Equation (3) states that the government budget balance comprises the trade balance and the excess of private investment over private savings (I – S). It provides the fundamentals for the Keynesian proposition of the ‘twin deficits’, i.e. the budget deficit and the trade deficit are closely linked. T ...
The Ricardian Approach to Budget Deficits
... the life cycle. This observation suggests that most people give or receive intergenerational transfers; a conclusion that supports the Ricardian position. Franco Modigliani (1988) contests this conclusion, but Laurence Kotlikoff (1988) shows that Modigliani's findings derive from an extremely narrow ...
... the life cycle. This observation suggests that most people give or receive intergenerational transfers; a conclusion that supports the Ricardian position. Franco Modigliani (1988) contests this conclusion, but Laurence Kotlikoff (1988) shows that Modigliani's findings derive from an extremely narrow ...
1 HOW DOES THE US TRADE DEFICIT AFFECT US
... In the United States, the trade deficit is measured and defined by the Bureau of Economic Analysis. It defines U.S. imports as goods and services produced in a foreign country and bought by U.S. consumers (About.com (a), 2014). It refers to all goods that are shipped into the U.S., even if they are ...
... In the United States, the trade deficit is measured and defined by the Bureau of Economic Analysis. It defines U.S. imports as goods and services produced in a foreign country and bought by U.S. consumers (About.com (a), 2014). It refers to all goods that are shipped into the U.S., even if they are ...
Chapter 15
... • Classicals oppose activist policy while Keynesians favor it • But even Keynesians admit that fiscal policy is difficult to use – There is a lack of flexibility, because much of government spending is committed years in advance – There are long time lags, because the political process takes time to ...
... • Classicals oppose activist policy while Keynesians favor it • But even Keynesians admit that fiscal policy is difficult to use – There is a lack of flexibility, because much of government spending is committed years in advance – There are long time lags, because the political process takes time to ...
Fiscal Deficit, Trade Deficit, and Financial Account
... framework of Keynesian thought, other things being equal, that twin deficits may result two possible reasons for the “third” deficit i.e. financial account deficit. The standard model of loanable fund, net capital outflow, and foreign exchange markets suggests that the influences of budget deficit o ...
... framework of Keynesian thought, other things being equal, that twin deficits may result two possible reasons for the “third” deficit i.e. financial account deficit. The standard model of loanable fund, net capital outflow, and foreign exchange markets suggests that the influences of budget deficit o ...
ch08
... spending and tax plans affect the IS curve – the debt and deficit are closely connected with national savings and investment • a rising debt tends to depress capital formation • a high national debt means that future taxes will have to be higher to pay interest charges ...
... spending and tax plans affect the IS curve – the debt and deficit are closely connected with national savings and investment • a rising debt tends to depress capital formation • a high national debt means that future taxes will have to be higher to pay interest charges ...
Slide 1
... If output is, say 5% below its natural level, the deficit as a ratio of GDP will therefore be about 2.5% larger than it would be if output was at the natural level of output. This effect of the deficit on economic activity has been called the automatic stabilizer. ...
... If output is, say 5% below its natural level, the deficit as a ratio of GDP will therefore be about 2.5% larger than it would be if output was at the natural level of output. This effect of the deficit on economic activity has been called the automatic stabilizer. ...
Macroeconomic Impact of Public Sector Enterprises: Some
... for 1978-79to 1990-91.Theseresults,strengtheningour earlierfindings, seem to question the implicitpremises of the onzoing reformsof the public enterprisesector in India. PUBLIC sector enterprises (PSEs) have been getting a bad press these days. They are widely perceived as an important reason for th ...
... for 1978-79to 1990-91.Theseresults,strengtheningour earlierfindings, seem to question the implicitpremises of the onzoing reformsof the public enterprisesector in India. PUBLIC sector enterprises (PSEs) have been getting a bad press these days. They are widely perceived as an important reason for th ...
as % of GNP - The Economic and Social Research Institute
... Pact while the second is defined as an annual fall in real GDP of at least 2 percentage points.2 2. Member States must maintain budget balances that when adjusted for the effects of the economic cycle are “Close to Balance or in Surplus” and should avoid fiscal policies which are pro-cyclical – aimi ...
... Pact while the second is defined as an annual fall in real GDP of at least 2 percentage points.2 2. Member States must maintain budget balances that when adjusted for the effects of the economic cycle are “Close to Balance or in Surplus” and should avoid fiscal policies which are pro-cyclical – aimi ...
... V = Velocity of money; P = General Price level; T = The volume of transactions directly reflects in a rising level of prices for a given quantity of output. In Fisher’s view, the velocity of money is assumed to be constant, as it only depends on the payment habits of the economic entities, which sta ...
M G F :
... Furthermore, the Finance Accounts showed primary surplus of Rs. 15025 crore (which was, however, only 0.32 per cent of GDP) from the huge deficit of Rs. 28654 crore in 2006-07 reflecting containment of non-interest expenditure below the non-debt receipts. Although the management of public finances d ...
... Furthermore, the Finance Accounts showed primary surplus of Rs. 15025 crore (which was, however, only 0.32 per cent of GDP) from the huge deficit of Rs. 28654 crore in 2006-07 reflecting containment of non-interest expenditure below the non-debt receipts. Although the management of public finances d ...
This chapter provides a broad perspective of the finances of... Government during 2003-04 and analyses critical changes in the major... Chapter 1
... estimate inter Plan growth rates. This process eliminates the “low base bias” of the year immediately preceding the plan. Annual growth has been indicated for the two most recent years, i.e. 2002-03 and 2003-04. For most series, ratios with respect to GDP have also been indicated. As in the case of ...
... estimate inter Plan growth rates. This process eliminates the “low base bias” of the year immediately preceding the plan. Annual growth has been indicated for the two most recent years, i.e. 2002-03 and 2003-04. For most series, ratios with respect to GDP have also been indicated. As in the case of ...
The budget surplus rule scam - Centre for Labour and Social Studies
... support the level of demand in the economy to maintain a reasonable level of employment. There is often a need in accounting terms for a budget deficit to balance against the trade deficit and low levels of investment. In now aiming for a budget surplus, the Chancellor needs to explain how circumsta ...
... support the level of demand in the economy to maintain a reasonable level of employment. There is often a need in accounting terms for a budget deficit to balance against the trade deficit and low levels of investment. In now aiming for a budget surplus, the Chancellor needs to explain how circumsta ...
Testing the Validity of the Triplet Deficit Hypothesis for Turkey
... Katrakilidis, 2013). However, the findings of several other studies support the REH (Dewald and Ulan, 1990; Kim, 1995; Kaufmann et al. 2002; Kim and Roubini, 2008; Ratha, 2012). Yet, some studies have also cast doubts on the validity of both traditional and REH approaches and have argued that the sa ...
... Katrakilidis, 2013). However, the findings of several other studies support the REH (Dewald and Ulan, 1990; Kim, 1995; Kaufmann et al. 2002; Kim and Roubini, 2008; Ratha, 2012). Yet, some studies have also cast doubts on the validity of both traditional and REH approaches and have argued that the sa ...