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Download pdf | 6604 KB |
Download pdf | 6604 KB |

... 1/ Total required adjustment to reduce the gross debt ratio to 60 percent by 2030 (net debt target of 80 percent for Japan). After 2020, the primary balance must be maintained constant at the prevailing level until 2030. ...
ECCU_en.pdf
ECCU_en.pdf

... with growth of 1.9% in 2008 as a result of declines in construction, tourism and manufacturing. These sectors are the main drivers of economic growth and contributed 12%, 8%, and 4% to GDP, respectively. Value added in the construction sector diminished by approximately 29% in 2009, in comparison wi ...
the full update on the Madagascar economy
the full update on the Madagascar economy

... Contrary to public perception, Madagascar continued to receive official aid inflows during 2009 and early 2010. Recent estimates (from the UN system and the Prime Minister office) reveal that the country benefited from about US$350 million in 2009 (and about US$ 60 million during the first quarter o ...
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... management will be needed given that two of the main credit rating agencies have put SA’s sovereignrisk rating on negative watch. BUSA sees the 2013 MTBPS as creating a ‘breathing space’. In the meantime, the weak current account situation and the increasing debt-to GDP ratio underscore the need to ...
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Chapter 34: Monetary and Fiscal Policy in a Global Setting
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... pressure on prices. To offset this, contractionary fiscal policy could be used, but that would also result in increasing the trade surplus and raising interest rates. An expansionary monetary policy will reduce interest rates and reduce unemployment too, but it will increase the trade deficit. Expan ...
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... When the GDP report is released, its value is immediately compared to market expectations. The bond market is likely to react positively if the GDP value is at or below the expected value. This is especially true if real final sales are poor and inventories are increasing because of slowing demands. ...
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View/ the full text in PDF format
View/ the full text in PDF format

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... pay restraint than other sub-sectors. Local government employers had already decided not to make a pay offer in 2010, even before the coalition government decided to impose a two year pay freeze. In 2011 the local government employers made no pay offer and this was extended into an unprecedented thi ...
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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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