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Political, Social and Economic Realities in Developing Countries
Political, Social and Economic Realities in Developing Countries

... progress within the free market system, that is through private persuasion, depends to a very significant extent on the efforts of Governments. Government policies should reflect a sustained commitment to improving the lot of the poor. International factors - notably world trade, foreign direct inve ...
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(I) + (II)

... The depth and spread of crises in region may be rooted in G-7 Pontious Pilate approach to financial crisis in EMs, caused by fear of a Moral Hazard epidemic. Political cycle and backward-looking politicians who fail to see the enormous rebound potential of the region. Financial vulnerabilities ...
Impact of Macroprudential Policy Measures on Economic Dynamics:  Koji Nakamura
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... (2) Each macro-prudential measures have different impacts on the average economic growth and the fluctuation of business cycles according to the Japanese economic structure. (3) “Real time” issue, the lags between recognition of the state of the economy and implementation of policy measures, is cruc ...
Weekly Economic Commentary
Weekly Economic Commentary

... guarantee that strategies promoted will be successful. Stock investing involves risk including loss of principal. The index of leading economic indicators (LEI) is an economic variable, such as private-sector wages, that tends to show the direction of future economic activity. International investin ...
Financial Sector: Saving, Investment and the Financial System
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The EuroZone “Debt” Crisis: Another “Center” – “Periphery” Crisis
The EuroZone “Debt” Crisis: Another “Center” – “Periphery” Crisis

... actually declined. The only country experiencing a significant increase in government debt was Portugal, but with a 2007 public debt level comparable to those of France and Germany (Storm and Naastepad 2015). Over that same period and for the Euro area in the aggregate, out of a total increase of 15 ...
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... generally all rates raise, including on gov’t bonds increases debt service payments to bond holders if higher debt service were permitted to flow into higher nominal debt growth. . . . . . people would feel richer & try to buy more goods inflation will eventually rise, not fall as intended ...
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... offset the drain caused by the public deficit. In a business expansion, corporate savings tends to rise quickly by large amounts. Our tax system now favors the rapid build-up of capital consumption allowances. These sources loom very large at the present time, and for the next few years. A great dea ...
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... Fiscal adjustment must be supported by the adoption and implementation of concrete medium-term consolidation plans. The recently-announced stimulus by Japan makes this even more urgent. Despite progress made so far, U.S. policymakers should agree on a comprehensive plan that includes both higher rev ...
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... Fiscal adjustment must be supported by the adoption and implementation of concrete medium-term consolidation plans. The recently-announced stimulus by Japan makes this even more urgent. Despite progress made so far, U.S. policymakers should agree on a comprehensive plan that includes both higher rev ...
Peterson Foundation - Financial Management Services, Inc.
Peterson Foundation - Financial Management Services, Inc.

... a good one for the United States government and for many Americans. As you will find in this Citizens’ Guide, the U.S. Government experienced the largest deficit (in dollar terms) in its history—$1.4 trillion. In addition, the federal government was in a $61.9 trillion financial hole comprised of ex ...
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Austerity

In economics, austerity is a set of policies with the aim of reducing government budget deficits. Austerity policies may include spending cuts, tax increases, or a mixture of both. Austerity may be undertaken to demonstrate the government's fiscal discipline to their creditors and credit rating agencies by bringing revenues closer to expenditures.In most macroeconomic models, austerity policies generally increase unemployment in the short run, as government spending falls reducing jobs in the public or private sector or both, while tax increases reduce household disposable income and thus consumption. The U.S. Congressional Budget Office illustrated this when comparing unemployment under alternative fiscal scenarios.Unemployment increases safety net spending and further reduces tax revenues, partially offsetting the austerity measures. Government spending contributes to gross domestic product (GDP), so reducing spending may result in a higher debt-to-GDP ratio, a key measure of the debt burden carried by a country and its citizens. Higher short-term deficit spending (stimulus) contributes to GDP growth particularly when consumers and businesses are unwilling or unable to spend. This is because crowding out (i.e., rising interest rates as government bids against business for a finite amount of savings, slowing the economy) is less of a factor in a downturn, as there may be a surplus of savings.In the aftermath of the Great Recession, austerity results in Europe have been as predicted by macroeconomics, with unemployment rising to record levels and debt-to-GDP ratios rising, despite reductions in budget deficits relative to GDP. Eurostat reported that unemployment in the 17 Euro area countries (EA17) reached record levels in March 2013, at 12.1%, up from 11.0% in March 2012 and 10.3% in March 2011; and that the overall debt-to-GDP ratio for the EA17 was 70.1% in 2008, 80.0% in 2009, 85.4% in 2010, 87.3% in 2011, and 90.6% in 2012. Further, real GDP in the EA17 declined for six straight quarters from Q4 2011 to Q1 2013. The U.S. Congressional Budget Office estimated in August 2012 that if the U.S. implemented moderate austerity measures, the unemployment rate would rise by over 1% and economic growth would be significantly reduced in 2013. The U.S. partially avoided the ""fiscal cliff"" through the American Taxpayer Relief Act of 2012. U.S. unemployment has fallen steadily from a peak of 10% in early 2010 to 5.3% by July 2015.
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