Slide 1
... development needs with fiscal space •How depends on country-specifics, but a number of things can improve the trade-off, including: •Careful investment selection, to get high returns •Plan ahead and identify risks •Ensure link with broader macro-economy → Grow the economy and avoid debt distress ...
... development needs with fiscal space •How depends on country-specifics, but a number of things can improve the trade-off, including: •Careful investment selection, to get high returns •Plan ahead and identify risks •Ensure link with broader macro-economy → Grow the economy and avoid debt distress ...
Views of American leaders on the national debt
... - Higher debt means higher interest payments - These require higher taxes, and this has a “dead-weight loss” ...
... - Higher debt means higher interest payments - These require higher taxes, and this has a “dead-weight loss” ...
Slide 1
... Tax smoothing => debt policy • Long-term smoothing – Absorb surprise spending shocks with debt – Population ageing: fewer workers and more retirees => more expenditures & less tax revenue (even w/constant tax rates on labor) – Tax smoothing dictates: • Set the tax rate high enough to be constant an ...
... Tax smoothing => debt policy • Long-term smoothing – Absorb surprise spending shocks with debt – Population ageing: fewer workers and more retirees => more expenditures & less tax revenue (even w/constant tax rates on labor) – Tax smoothing dictates: • Set the tax rate high enough to be constant an ...
Ksenia Yudaeva: National debt - vice or virtue?
... However, in order to maintain macroeconomic stability we need not only a balanced policy pursued by the central bank, but also the appropriate fiscal policy, including the government debt management policy. The national debt in national currency is a basic financial instrument for any country of the ...
... However, in order to maintain macroeconomic stability we need not only a balanced policy pursued by the central bank, but also the appropriate fiscal policy, including the government debt management policy. The national debt in national currency is a basic financial instrument for any country of the ...
Cost of Foreign Debt Versus Equity
... have a very strong credit rating. A consultant suggests to Carazona that it should use equity financing there to avoid the high interest expense. He suggests that since Carazona’s cost of equity in the U.S. is about 14 percent, so the Indonesian investors should be satisfied with a return of about 1 ...
... have a very strong credit rating. A consultant suggests to Carazona that it should use equity financing there to avoid the high interest expense. He suggests that since Carazona’s cost of equity in the U.S. is about 14 percent, so the Indonesian investors should be satisfied with a return of about 1 ...
The Global Financial Crsis and The World Economy
... Accomodative monetary policy Strong global growth The ‘end of boom and bust’ The search for yield and underestimation of risk Regulatory vacuums ...
... Accomodative monetary policy Strong global growth The ‘end of boom and bust’ The search for yield and underestimation of risk Regulatory vacuums ...
ACPAC 2013
... - The “creative accounting” techniques Greece used were widely practiced in other European countries, including the UK. Other such techniques still are practiced. ...
... - The “creative accounting” techniques Greece used were widely practiced in other European countries, including the UK. Other such techniques still are practiced. ...
Debt Ceiling: A Stop Sign for Federal Borrowing
... There are two categories of federal debt: (1) funds the government has borrowed, primarily through Treasury securities, from individuals, corporations, state or local governments, foreign governments, and other non-federal entities; and (2) funds borrowed from government accounts, such as the Social ...
... There are two categories of federal debt: (1) funds the government has borrowed, primarily through Treasury securities, from individuals, corporations, state or local governments, foreign governments, and other non-federal entities; and (2) funds borrowed from government accounts, such as the Social ...
Deficits, Debt, and Interest
... Debt held by the public is a far better measure of debt’s effect on the economy because it reflects the demands that the government is placing on private credit markets. (When the Treasury issues bonds to Social Security and other trust funds, by contrast, that internal transaction does not affect t ...
... Debt held by the public is a far better measure of debt’s effect on the economy because it reflects the demands that the government is placing on private credit markets. (When the Treasury issues bonds to Social Security and other trust funds, by contrast, that internal transaction does not affect t ...
Will Debt Undue US? By Merton Finkler, Ph.D. Professor Emeritus
... “unprecedented fiscal contraction steps are taken.” • Countries with strong GDP growth and low interest payments tend to have fiscal space. • A country’s borrowing limit depends upon investor confidence, which is based on presumptions about going over a potential “fiscal cliff.” ...
... “unprecedented fiscal contraction steps are taken.” • Countries with strong GDP growth and low interest payments tend to have fiscal space. • A country’s borrowing limit depends upon investor confidence, which is based on presumptions about going over a potential “fiscal cliff.” ...
Session 13: COUNTRY RISK, MACROECONOMIC MODELS AND
... Consensus forecasting, popular in recent years, help understanding the mind of the market, can miss critical turning points (e.g., Blue Chip Economic Indicators, a monthly survey of 50+ economists, missed severe downturn in 1982 and the onset of the 1990-91 recession. ii. Scenario analysis, a sophis ...
... Consensus forecasting, popular in recent years, help understanding the mind of the market, can miss critical turning points (e.g., Blue Chip Economic Indicators, a monthly survey of 50+ economists, missed severe downturn in 1982 and the onset of the 1990-91 recession. ii. Scenario analysis, a sophis ...
FIJI*S PUBLIC DEBT
... Loans Drawn – proceeds from Government Domestic Bonds and external loans and bonds shown in Statement of Receipts and Payments adopting modified cash basis of accounting. ...
... Loans Drawn – proceeds from Government Domestic Bonds and external loans and bonds shown in Statement of Receipts and Payments adopting modified cash basis of accounting. ...
Spain Vote Threatens to Uncover Debt
... Spain lately has steadied—if not dismissed—concerns about its finances by slashing its budget deficit to 9.3% of gross domestic product in 2010 from 11% of GDP in 2009. But most of the reduction was thanks to central-government cuts. Regional and municipal governments, which piled on debt during the ...
... Spain lately has steadied—if not dismissed—concerns about its finances by slashing its budget deficit to 9.3% of gross domestic product in 2010 from 11% of GDP in 2009. But most of the reduction was thanks to central-government cuts. Regional and municipal governments, which piled on debt during the ...
The political economy of government debt
... • Weak Government do not control the expenditure: common pool problem -VELASCO 1992 • Budget institutions matter -ALESINA-PEROTTI (1996) ...
... • Weak Government do not control the expenditure: common pool problem -VELASCO 1992 • Budget institutions matter -ALESINA-PEROTTI (1996) ...
Puerto Rico`s debt crisis and economic trends
... During the summer of 2014, PR Energy Authority (PREPA) announced to their lenders (banks and bond holders), that the corporation was not able to make a $671 million payment. On December 2014, the government passed a second gas tax increase from $9 to $15 per barrel, to back a $2.9 billion bond issua ...
... During the summer of 2014, PR Energy Authority (PREPA) announced to their lenders (banks and bond holders), that the corporation was not able to make a $671 million payment. On December 2014, the government passed a second gas tax increase from $9 to $15 per barrel, to back a $2.9 billion bond issua ...
Unit 8
... - So far, during the 2000s, real interest rates are low, but many countries are running primary deficits, and their debt ratios are again going up. ...
... - So far, during the 2000s, real interest rates are low, but many countries are running primary deficits, and their debt ratios are again going up. ...
Slide 1
... When and where are the review sessions for the final exam? There will be review sessions. Details to follow The TAs will have regular sections the week of 12/2; special sessions next week. All review sessions are optional. The format is student Q and prof A. ...
... When and where are the review sessions for the final exam? There will be review sessions. Details to follow The TAs will have regular sections the week of 12/2; special sessions next week. All review sessions are optional. The format is student Q and prof A. ...
The National Debt
... months to a year), Treasury Notes (repaid in two to ten years), Treasury Bonds (paid back in 30 years) ...
... months to a year), Treasury Notes (repaid in two to ten years), Treasury Bonds (paid back in 30 years) ...
doc - Homework Market
... If nothing was done by the government to stop the recession, it time it would right itself once. Classical economists believed that equilibrium would be reached and maintained at a level consistent with full employment by the actions of three self-regulating markets (Amacher & Pate, 2012). This theo ...
... If nothing was done by the government to stop the recession, it time it would right itself once. Classical economists believed that equilibrium would be reached and maintained at a level consistent with full employment by the actions of three self-regulating markets (Amacher & Pate, 2012). This theo ...
Introduction: Financial Frictions in Macroeconomics
... • Examples: real estate prices, stocks and bonds, exchange rates • Conventional macroeconomics has largely ignored these • The view is that redistribution has negligible aggregate effects ...
... • Examples: real estate prices, stocks and bonds, exchange rates • Conventional macroeconomics has largely ignored these • The view is that redistribution has negligible aggregate effects ...
Government debt
Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. (In federal states, ""government debt"" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual ""government deficit"" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, long term is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid.