Government budget balance - Knowledge (XXG)

2168:

income in taxes, fees, and other charges. This added purchasing power, when spent, provides markets for private production, inducing producers to invest in additional plant capacity, which will form part of the real heritage left to the future. This is in addition to whatever public investment takes place in infrastructure, education, research, and the like. Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. Deficits in excess of a gap growing as a result of the maximum feasible growth in real output might indeed cause problems, but we are nowhere near that level.

2480: 2100: 60: 627: 2189:, states that because households anticipate that current public deficit will be paid through future taxes, those households will accumulate savings now to offset those future taxes. If households acted in this way, a government would not be able to use tax cuts to stimulate the economy. The Ricardian equivalence result requires several assumptions. These include households acting as if they were infinite-lived dynasties as well as assumptions of no uncertainty and no liquidity constraints. 2570:

divided them into two categories: expenditure-based plans, consisting mostly of spending cuts, and tax-based plans, consisting mostly of tax hikes." They suggest that paying down the national debt in twenty years is possible through a simplified income tax policy while requiring government officials to enact and follow a balanced budget with additional education on government spending and budgets at all levels of public education. (Alesina, Favor & Giavazzi, 2018).

596:, and there is also a private sector financial surplus due to household saving exceeding business investment, then by definition, there must exist a government budget deficit so all three net to zero. The government sector includes federal, state and local governments. For example, the U.S. government budget deficit in 2011 was approximately 10% GDP (8.6% GDP of which was federal), offsetting a capital surplus of 4% GDP and a private sector surplus of 6% GDP. 1738: 1720:, measures the difference between government spending and revenues over the very long term, typically as a percentage of gross domestic product. The fiscal gap can be interpreted as the percentage increase in revenues or reduction of expenditures necessary to balance spending and revenues in the long run. For example, a fiscal gap of 5% could be eliminated by an immediate and permanent 5% increase in taxes or cut in spending or some combination of both. 604:

product between the third quarter of 2007 and the second quarter of 2009, which was when the financial deficit of US government (federal and state) reached its peak...No fiscal policy changes explain the collapse into massive fiscal deficit between 2007 and 2009, because there was none of any importance. The collapse is explained by the massive shift of the private sector from financial deficit into surplus or, in other words, from boom to bust."

1657: 2598:. Nevertheless, the threat of inflation leads creditors to demand higher and higher rates. Inflation thus becomes a decoy that gives governments time but is then paid for in the form of permanently penalizing rates. In the American model, however, inflation remains an option that is often sought. In the European model, the declared choice is price stability in order to ensure the durability of the euro. 448: 2675:

fiscal year and at least the following four years. A congressional budget resolution is a non-binding resolution passed by both the House of Representatives and the Senate that sets spending and revenue targets for the upcoming fiscal year and at least the following four years. It serves as a blueprint for Congress as it considers budget-related legislation.

2364:(under the law) political power. Form of the state budget can be influenced by political instability (higher frequency of elections), political orientation of those possessing political power or by the way of doing budgetary process (degree of cooperation between authorities), which is examined in a field called 2670:

In terms of entitlement programs, changes to these programs could have significant implications for individuals and families that rely on them for support. For example, raising the retirement age for Social Security could have a disproportionate impact on low-income individuals who are more likely to

2662:

There are also ongoing debates regarding entitlement programs, such as Social Security and Medicare, which account for a significant portion of federal spending. Some policymakers have proposed changes to these programs, such as raising the retirement age or means-testing benefits, in order to reduce

2633:

Government Efficiency: Improving government efficiency and reducing waste can help reduce deficits. This can include streamlining government programs and services, reducing bureaucracy, and implementing cost-saving measures. However, these policies can be difficult to implement and may face political

2621:

Taxation Policy: The U.S. government has implemented various tax policies to address budget deficits, such as increasing taxes on high-income earners and corporations. However, tax policies can have significant political and economic implications, and their effectiveness in reducing deficits is often

2412:

is variable, that measures if the major budgetary powers have been allocated to the Minister of Finance ("delegation"), if the role of the Minister of Finance is to enforce pre-existing deal between other ministers ("commitment"), if spending decisions are made without discussion with other ministers

2329:

may influence government budget both directly and indirectly and its influence on budget balance is dubious, similar to inflation. Budget may be directly affected via budgetary items, for instance by higher revenues from capital gains tax or wealth tax, or indirectly via second-round effects of asset

2167:

This fallacy seems to stem from a false analogy to borrowing by individuals. Current reality is almost the exact opposite. Deficits add to the net disposable income of individuals, to the extent that government disbursements that constitute income to recipients exceed that abstracted from disposable

1723:

It includes not only the structural deficit at a given point in time, but also the difference between promised future government commitments, such as health and retirement spending, and planned future tax revenues. Since the elderly population is growing much faster than the young population in many

2788: 2682:

Pay-as-you-go (PAYGO) requirements are statutory budget-control measures that require new tax or mandatory spending legislation to be deficit-neutral over specified periods. This means that any increase in the deficit resulting from new legislation must be offset by other changes in law that reduce

2674:

The Congressional Budget Act of 1974 established an internal process for Congress to formulate and enforce an overall plan each year for acting on budget legislation. This process includes the development of a congressional budget resolution, which sets spending and revenue targets for the upcoming

2666:

The implications of these policy solutions and legislation are complex and multifaceted. For example, the Budget Control Act of 2011 has led to reductions in federal spending that have had a significant impact on various programs and services. While this has helped to reduce the federal deficit, it

2569:

According to Alesina, Favor & Giavazzi (2018), "we recognized that shifts in fiscal policy typically come in the form of multiyear plans adopted by governments with the aim of reducing the debt-to-GDP ratio over a period of time-typically three to four years. After reconstructing such plans, we

2552:

Every year, the government must pay debt service payments on their overall public debt. These payments include principal and interest payments. Occasionally, the government has the opportunity to refinance some of their public debt to afford them lower debt service payments. Doing this would allow

2654:

One such policy solution is the Budget Control Act of 2011, which established caps on discretionary spending and created a mechanism for automatic spending cuts in the event that those caps were exceeded. This act was intended to reduce the federal deficit by $ 2.1 trillion over a ten-year period,

2527:

If a reduction in a structural deficit is desired, either revenue must increase, spending must decrease, or both. Taxes may be increased for everyone/every entity across the board or lawmakers may decide to assign that tax burden to specific groups of people (higher-income individuals, businesses,

2133:

Large long-term loans are risky for the lender, and therefore commanded high interest rates. To reduce their borrowing costs, governments began to issue bonds that were payable to the bearer (rather than the original purchaser) so that the lenders could sell on some or all of the debt to someone

2642:

It is important to note that these policy solutions can have significant implications for the economy and society, and their effectiveness in reducing deficits may vary depending on various factors, such as economic conditions and political climate. It is also important to consider the potential

2625:

Fiscal Policy: The government can use fiscal policy to increase or decrease government spending and influence the economy. This can include increasing government spending to stimulate economic growth during a recession or decreasing spending during times of economic expansion to reduce inflation

2230:, either gross (without effect of the inflation) or net, is used as a wider measure of government actions rather than measure of government deficit. Nevertheless, government generally set their yearly budget aims in flow terms (deficits) rather than in stock terms (debts). This is partly because 2192:

Also, for Ricardian equivalence to apply, the deficit spending would have to be permanent. In contrast, a one-time stimulus through deficit spending would suggest a lesser tax burden annually than the one-time deficit expenditure. Thus temporary deficit spending is still expansionary. Empirical

2171:

Even the analogy itself is faulty. If General Motors, AT&T, and individual households had been required to balance their budgets in the manner being applied to the Federal government, there would be no corporate bonds, no mortgages, no bank loans, and many fewer automobiles, telephones, and

1185:. If the government issues its own currency, MMT tells us that the level of taxation relative to government spending (the government's budget deficit or surplus) is in reality a policy tool that regulates inflation and unemployment, and not a means of funding the government's activities per se. 1096:

add net financial assets to the private sector. This is because a budget deficit means that a government has deposited, over the course of some time range, more money and bonds into private holdings than it has removed in taxes. A budget surplus means the opposite: in total, the government has

603:

argued that sudden shifts in the private sector from deficit to surplus forced the government balance into deficit, and cited as example the U.S.: "The financial balance of the private sector shifted towards surplus by the almost unbelievable cumulative total of 11.2 per cent of gross domestic

2658:

Another policy solution is the Tax Cuts and Jobs Act of 2017, which implemented significant tax cuts for individuals and corporations. Proponents of this legislation argued that it would stimulate economic growth and create jobs, while opponents raised concerns about its impact on the federal

2629:

Monetary Policy: The Federal Reserve can use monetary policy to influence the economy by adjusting interest rates and controlling the money supply. This can include decreasing interest rates to stimulate economic growth or increasing them to reduce inflation. However, monetary policy can have

3443:

National Academies of Sciences, Engineering, and Medicine; Health And Medicine, Division; Board on Population Health and Public Health Practice; Committee on Community-Based Solutions to Promote Health Equity in the United States; Baciu, A.; Negussie, Y.; Geller, A.; Weinstein, J. N. (2017).

2678:

Budget reconciliation is an optional procedure used in some years to facilitate the passage of legislation amending tax or spending law. It allows lawmakers to advance spending and tax policies through the Senate with a simple majority, rather than the 60 votes typically needed to overcome a

2419:

refers to effective number of them in parliament, as a high number means requirement for large coalitions, increasing the probability of higher budget deficits. Limited number on the other land may lead to autocracy and loss of welfare influencing the budget balance, because democracy is key

1176:

According to the sectoral balances framework, budget surpluses offset net saving; in a time of high effective demand, this may lead to a private sector reliance on credit to finance consumption patterns. Hence, continual budget deficits are necessary for a growing economy that wants to avoid

2637:

Budget Reconciliation: The U.S. government can use the budget reconciliation process to pass legislation related to the budget with a simple majority vote. This process can allow for quick and decisive action on budget-related issues, but it can also limit debate and input from the minority

2531:

Like with taxes, they could decide to cut the budgets of every government agency/entity by the same percentage or they may decide to give a greater budget cut to specific agencies. Many, if not all, of these decisions made by lawmakers are based on political ideology, popularity with their

1621:

can influence the growth or shrinkage of fiscal deficits in several ways. Increased levels of economic activity generally lead to higher tax revenues, while government expenditures often increase during economic downturns because of higher outlays for social insurance programs such as

1205:

The meaning of "deficit" differs from that of "debt", which is an accumulation of yearly deficits. Deficits occur when a government's expenditures exceed the revenue that it levies. The deficit can be measured with or without including the interest payments on the debt as expenditures.

1091:

In any given time period, the government's budget can be either in deficit or in surplus. A deficit occurs when the government spends more than it taxes; and a surplus occurs when a government taxes more than it spends. Sectoral balances analysis shows that as a matter of accounting,

2667:

has also raised concerns about the impact on individuals and communities that rely on these programs. The Tax Cuts and Jobs Act of 2017 has similarly had a range of impacts, including both positive effects on economic growth and concerns about its impact on the federal deficit.

2962: 2206:

is induced by changes in the interest rate. When the government wishes to borrow, its demand for credit increases and the interest rate, or price of credit, increases. This increase in the interest rate makes private investment more expensive as well and less of it is used.

2378:, referring to the fact that politicians tend to spend more money before and after the elections to please the voters. Due to it, there is a negative correlation between political stability and budget balance meaning the less political stability, the less balanced budget. 2311:

both worsen the budget balance because they increase the amount states must pay on interests, therefore their budget expenditures. In addition, increase of interest rate is an important mean of monetary policy to regulate the inflation, which clears the value of debt.

2318:

is generally considered to affect the budget balance, but its effect is not a priori clear. During inflation, government is often forced to compensate its effect to ordinary people, which means more expenditures. On the other hand, if country is highly indebted,

2278:

demand higher interest rates on new loans or long-term loans with variable interest to cover the potential loses. This measure often even worsens country's budget balance and increase the risk of country ending in insolvency or, in some cases, in bankruptcy.

611:

explained in December 2011 the causes of the sizable shift from private deficit to surplus: "This huge move into surplus reflects the end of the housing bubble, a sharp rise in household saving, and a slump in business investment due to lack of customers."

1699:

is the deficit that remains across the business cycle, because the general level of government spending exceeds prevailing tax levels. The observed total budget deficit is equal to the sum of the structural deficit with the cyclical deficit or surplus.

1641:

Inflation reduces the real value of accumulated debt. If investors anticipate future inflation, however, they will demand higher interest rates on government debt, making public borrowing more expensive.total borrowing=fiscal deficit of that year

2457:

relate to unusual economic events, which have significant effect on state budget balance, country-specific dummies for example to the German unification in 1990 and year dummies to macroeconomic shocks not fully reflected in the variables, like

2686:

Overall, the implementation of policy solutions and legislation to address issues regarding the government budget balance is a complex and ongoing process that requires careful consideration of a range of factors and potential implications.

2560:

is a practice that sees a government enforcing that payments, procurement of resources will only be done inline with realised revenues, such that a flat or a zero balance is maintained. Surplus purchases are funded through increases in tax.

2683:

the deficit by an equal amount. If PAYGO requirements are not met, automatic spending cuts (known as sequestration) may be triggered to offset the increase in the deficit. However, Congress can waive PAYGO requirements through legislation.

2201:

The crowding-out hypothesis is the conjecture that when a government experiences a deficit, the choice to borrow to offset that deficit draws on the pool of resources available for investment, and private investment gets crowded out. This

2245:, the latter is preferable measure of the policy-related part of the budget and reduces the mutual partiality that may originate from the interaction between economic growth and budgets. However, there are serious warnings in estimating 2304:

are variables measuring the responsibility of government practising fiscal policy to macroeconomic terms. They help government to understand the current economic situation and choose the correct policy to sustain economic prosperity.

2976: 2451:(EMU), which were supposed to control government overspending. However, these criteria concerning maximum debt-to-GDP ratio and budget deficit are not evident to have some changing effect on budgets and debts of member states. 655:

is a stock, an accumulation). GDP can be expressed equivalently in terms of production or the types of newly produced goods purchased, as per the National Accounting relationship between aggregate spending and income:

2406:. A single party government does not have to deal with ideology disagreements like the coalition type of government. It is considered to be more active in enforcing new laws or measures and has more balanced budgets. 1614:

That is, the debt after this year's government operations equals what it was a year earlier plus this year's total deficit, because the current deficit has to be financed by borrowing via the issuance of new bonds.

1503: 2586:", has certainly alleviated the situation of Greek finances, but has put many banks in difficulty. Thus, Cypriot banks lost 5% of their assets in the haircut, which caused a banking crisis in this country. 1172:

is net exports. This implies that private net saving is only possible if the government runs budget deficits; alternately, the private sector is forced to dissave when the government runs a budget surplus.

2611:

In recent years, the United States has faced a growing concern over its government budget balance, with both deficits and surpluses having significant implications for the economy and society as a whole.

1684:) high. Conversely, at the peak of the cycle, unemployment is low, increasing tax revenue and decreasing social security spending. The additional borrowing required at the low point of the cycle is the 630:

Sectoral financial balances in U.S. economy 1990–2012. By definition, the three balances must net to zero. Since 2009, the U.S. capital surplus and private sector surplus have driven a government budget

2234:

variables are harder to target as circumstances outside direct government control (e.g. economic growth, exchange rate changes and asset price changes) affect stock variables more than flow variables.

2594:

As the interest rates on government debt securities are generally fixed, rising prices reduce the relative weight of interest payments for a government that sees its revenues artificially inflated by

1359: 1609: 2441:

are variables used mainly in Econometrics and Statistics to categorize data can only take one of two values (mostly 0 or 1). Here, it refers to events unique only for some parts of the world.

1703:

Some economists have criticized the distinction between cyclical and structural deficits, contending that the business cycle is too difficult to measure to make cyclical analysis worthwhile.

1626:. Changes in tax rates, tax enforcement policies, levels of social benefits, and other government policy decisions can also have major effects on public debt. For some countries, such as 1100:

Therefore, budget deficits, by definition, are equivalent to adding net financial assets to the private sector, whereas budget surpluses remove financial assets from the private sector.

1073:)), where net exports is the net spending of non-residents on this country's production. Thus total private saving equals private investment plus the public deficit plus net exports. 2430:

measures quality of political institutions in a country, which are key determinant of quality economic institution, stating the higher the quality, the lower are expected deficits.

1194: 902: 1088:, whereas the non-government sector includes private individuals and firms (including the private banking system) and the external sector – that is, foreign buyers and sellers. 1044: 1163: 967: 713: 2448: 3487: 572:

since it is measured at a specific point in time. The cumulative flow of deficits equals the stock of debt when a government employs cash accounting (though not under

1395: 1084:

describes any transactions between the government sector and the non-government sector as a vertical transaction. The government sector includes the treasury and the

804: 2164:

Deficits are considered to represent sinful profligate spending at the expense of future generations who will be left with a smaller endowment of invested capital.

1304: 1277: 1635: 1415: 1250: 522:) the budget balance is calculated using only spending on current operations, with expenditure on new capital assets excluded. A positive balance is called a 545:

and interest payments on accumulated government debt; the two together give the budget balance. Furthermore, the budget balance can be broken down into the

3408: 2651:

To address issues regarding the government budget balance, policymakers in the United States have implemented various policy solutions and legislation.

2134:

else. This innovation reduced the risk for the lenders, and so the government could offer a lower interest rate. Examples of bearer bonds are British

2122:

These loans became popular when private financiers had amassed enough capital to provide them, and when governments were no longer able to simply print

2396:

rates, which in most cases increase tax revenues, therefore budget deficit is not that much higher than during the government of right-wing parties.

2753: 477: 573: 515: 1724:

developed countries, many economists argue that these countries have important fiscal gaps, beyond what can be seen from their deficits alone.

3463: 2701: 1427: 2156:

According to most economists, during recessions, the government can stimulate the economy by intentionally running a deficit. As Professor

584:

The government fiscal balance is one of three major sectoral balances in the national economy, the others being the foreign sector and the

3504: 2748: 2743: 2540:

Similar to increasing taxes, changes can be made to the tax code that increases tax revenue. Closing tax loopholes and allowing fewer

2274:. Countries with very high debt-to-GDP ratio are considered to be more financially vulnerable during recessions, and due to it, their 765:

Another perspective on the national income accounting is to note that households can allocate total income (Y) to the following uses:

3385: 3072: 2948: 2479: 2330:

prices, e.g. lower revenues from consumer tax because of lower amount of money, which can inhabitants spend on goods and services.

2257:

Concerning factors clarifying variances in budgetary results, there are budgetary, macroeconomic, political, and dummy variables.

3426: 3224: 2099: 3182: 2111:, the deficit could only be financed with loans from private investors or other countries. A prominent example of this was the 1651: 3321: 2854: 2484: 1312: 1229:(which is often called the fiscal deficit or just the 'deficit') is the primary deficit plus interest payments on the debt. 3593: 2763: 592:. For example, if there is a foreign financial surplus (or capital surplus) because capital is imported (net) to fund the 2348:

are considered as developed countries, but their debt is one of the highest in the world and any significant increase of

1521: 972:

This implies the accounting identity for the three sectoral balances – private domestic, government budget and external:

3618: 2768: 2579: 470: 3012:

website. Data on U.S. state government finances can be found at the National Association of State Budget Officers

1197:(OECD) as government net borrowing or net lending, excluding interest payments on consolidated government liabilities. 3505:"Policy Solutions to Reduce Inflation - Policy Solutions to Reduce Inflation - United States Joint Economic Committee" 2438: 554: 553:) and the cyclical component: the structural budget balance attempts to adjust for the impact of cyclical changes in 2885: 626: 2866: 2246: 3397:

Alesina, A., Favero, C., & Giavazzi, F. (2018). Climbing out of Debt. Finance & Development, 55(1), 6-11.

1093: 165: 3095:"What Determines Fiscal Balances? An Empirical Investigation in Determinants of Changes in OECD Budget Balances" 2997: 2375: 2203: 2112: 1690:. By definition, the cyclical deficit will be entirely repaid by a cyclical surplus at the peak of the cycle. 2374:

has significant effect on budget balance, because before and after the elections, there is a tendency called

2711: 727: 511: 463: 1511:

Finally, this year's debt can be calculated from last year's debt and this year's total deficit, using the

59: 830: 636: 589: 377: 3594:"Policy Basics: Introduction to the Federal Budget Process | Center on Budget and Policy Priorities" 3293: 3249: 3154: 3110: 2886:"Goldman's Top Economist Explains The World's Most Important Chart, And His Big Call For The US Economy" 2182: 978: 2320: 2671:

have physically demanding jobs and may not be able to continue working until the new retirement age.

2463: 2447:

refers to the consolidation measures about the fiscal policy in European countries to qualify to the

2421: 2323:

allows country to pay less real value of debt, or, in case of a deal with a creditor, pay it faster.

1623: 1109: 913: 3036:

In this column, a negative number represents a deficit, and a positive number represents a surplus.

2967: 2459: 2360:

The economic institutions, among them those, which apply fiscal policy, are directly influenced by

1214: 1097:

removed more money and bonds from private holdings via taxes than it has put back in via spending.

1081: 743: 662: 507: 357: 222: 185: 76: 35: 447: 3541: 3481: 2389: 1717: 1695: 1618: 639:) is the value of all goods and services produced within a country during one year. GDP measures 382: 352: 306: 244: 180: 3469: 3459: 3381: 3281: 3202: 3142: 3098: 3068: 2944: 2834: 2726: 2716: 2655:

and has led to reductions in federal spending on defense, domestic programs, and other areas.

2583: 2385: 2365: 2290: 2266: 616: 531: 428: 336: 284: 141: 96: 91: 3285: 3146: 3102: 2340:

states have higher budget deficits due to need to finance catching-up expenditures. However,

2115:

dynasty in the late 18th and 19th century, though there were many earlier examples (e.g. the

1367: 771: 3531: 3451: 3333: 3194: 2826: 2758: 2151: 1686: 1222: 1178: 818: 301: 291: 190: 170: 146: 31: 3241: 1282: 1255: 3306: 3262: 3167: 3123: 2972: 2557: 2393: 2285:

means that past fiscal policy decisions done by government can influence the condition of

2157: 1681: 1656: 652: 619:

framework for macroeconomic analysis of national economies developed by British economist

565: 519: 433: 410: 405: 400: 367: 331: 229: 210: 153: 116: 81: 42: 3445: 2413:("fiefdom") or if it is a combination of delegation and commitment (typology based on ). 564:, since it is an amount per unit of time (typically, per year). Thus it is distinct from 3352: 1751:

Please help update this article to reflect recent events or newly available information.

1177:

deflation. Therefore, budget surpluses are required only when the economy has excessive

2721: 2508: 2352:

would lead to huge financial problems, therefore this assumption is quite problematic.

2286: 2116: 2108: 1673: 1400: 1235: 1077: 648: 644: 585: 569: 535: 326: 266: 254: 51: 3198: 3612: 3545: 3520:"Policy failure and the policy-implementation gap: Can policy support programs help?" 2706: 2696: 2679:

filibuster. This can make it easier for Congress to pass budget-related legislation.

2544:

are different from the act of increasing taxes but essentially have the same effect.

2541: 2520: 2349: 2271: 2186: 2139: 1713: 1508:

where the first term on the right side is interest payments on the outstanding debt.

640: 593: 561: 311: 261: 239: 234: 217: 158: 134: 111: 101: 86: 69: 2915: 3623: 3242:"Government Fragmentation and Fiscal Policy Outcomes: Evidence from OECD Countries" 3046: 2738: 2231: 1677: 1085: 620: 608: 451: 271: 249: 175: 106: 3536: 3519: 2811: 2384:

refers to the political ideology of the government. It is generally supposed that

588:. The sum of the surpluses or deficits across these three sectors must be zero by 2185:

hypothesis, named after the English political economist and Member of Parliament

3278:"The Design of Fiscal Rules and Forms of Governance in European Union Countries" 615:

The sectoral balances (also called sectoral financial balances) derive from the

600: 372: 3009: 2902: 2855:

Financial Times-Martin Wolf-The Balance Sheet Recession in the U.S. – July 2012

2336:

has quite straightforward effect on budget balance, if it is supposed that low

1660:

French government borrowing (budget deficits) as a percentage of GNP, 1960–2009

17: 3574: 2830: 1708: 1397:

is last year's debt (the debt accumulated up to and including last year), and

735: 321: 296: 197: 121: 3206: 2838: 2630:

unintended consequences and may not always be effective in reducing deficits.

2483:

The government surplus/deficit of struggling European countries according to

2595: 2403: 2127: 1182: 3473: 3337: 3277: 1417:

is the interest rate attached to the debt, then the total deficit for year

3138: 3094: 2160:, awarded with the 1996 Nobel Memorial Prize in Economic Sciences put it: 30:

This article is about government budget balances. For trade balances, see

3444:

Weinstein, James N.; Geller, Amy; Negussie, Yamrot; Baciu, Alina (eds.).

2516: 2496: 2275: 3378:

Financial Management For Public, Health And Not-For-Profit Organizations

3183:"Economic, political, and institutional determinants of public deficits" 3047:"Vickrey, William. 1996. 15 Fatal Fallacies of Financial Fundamentalism" 2553:

the government to cut expenditures without cutting government spending.

2392:. On the other hand, left-wing parties tend to set more "socially just" 3021: 2512: 2337: 2135: 1498:{\displaystyle {\text{Total deficit}}_{t}=r\cdot D_{t-1}+G_{t}-T_{t}\,} 3276:

Hallerberg, Mark; Strauch, Rolf; von Hagen, Jürgen (1 December 2004).

2220:

Dependent variables include budgetary variables, meaning deficits and

1680:. This means that tax revenues are low and expenditure (e.g., on 1664:

A government deficit can be thought of as consisting of two elements,

3575:"Healthcare Policy: What is It and Why is It Important? | USAHS" 2504: 2492: 2341: 1631: 1627: 316: 3455: 2643:

unintended consequences and equity implications of these policies.

2582:, the cancellation of part of the debt in 2011, which is called a " 1638:(OPEC), oil and gas receipts play a major role in public finances. 2500: 2488: 2478: 2345: 2270:

is used to characterise the long-run sustainability of government

2123: 2098: 1655: 1217:

on goods and services and total current revenue from all types of

625: 2221: 1049:

The sectoral balances equation says that total private saving (

534:

presents the government's proposed revenues and spending for a

1731: 1218: 3322:"The institutional environment for infrastructure investment" 2528:

etc.) Lawmakers may also decide to cut government spending.

2289:

in the following years (e.g. huge government spending during

3409:"Everything You Need to Know About the Cyprus Bank Disaster" 3018:

Organization for Economic Cooperation and Development (OECD)

3016:. Data for most advanced countries can be obtained from the 2903:"Deficit Spending 101 – Part 1 : Vertical Transactions" 3020:

website. Data for most other countries can be found at the

557:, in order to indicate the longer-run budgetary situation. 2193:

evidence on Ricardian equivalence effects has been mixed.

1774:

National government budgets for 2010 (in billions of US$ )

1646:

Structural deficits, cyclical deficits, and the fiscal gap

541:

The government budget balance can be broken down into the

41:"Budget deficits" redirects here. Not to be confused with 3137:

Eschenbach, Felix; Schuknecht, Ludger (1 November 2002).

3013: 2103:

United States deficit or surplus percentage 1901 to 2006

3380:, 2nd Ed., Ch. 11, pp. 442–43. Pearson Education, Inc, 1354:{\displaystyle {\text{Primary deficit}}=G_{t}-T_{t}.\,} 3017: 2943:, 2nd ed., Ch. 3.5.1, p. 56. Oxford University Press, 1195:

Organisation for Economic Co-operation and Development

3518:

Hudson, Bob; Hunter, David; Peckham, Stephen (2019).

3139:"The Fiscal Costs of Financial Instability Revisited" 3008:

Data on the United States' federal debt can found at

2916:"OECD Glossary of Statistical Terms: Primary Balance" 1524: 1430: 1403: 1370: 1315: 1285: 1258: 1238: 1112: 981: 916: 833: 774: 665: 3353:"How to Use Dummy Variables in Regression Analysis" 1604:{\displaystyle {D_{t}}=(1+r)D_{t-1}+G_{t}-T_{t}.\,} 2935: 2933: 2470:Potential policy solutions for unintended deficits 1603: 1497: 1409: 1389: 1353: 1298: 1271: 1244: 1157: 1038: 961: 896: 798: 707: 3093:Tujula, Mika; Wolswijk, Guido (1 December 2004). 2388:are more-expenditure and deficit-prone than the 651:is a flow, measured per unit of time, while the 2162: 3240:Kontopoulos, Yianos; Perotti, Roberto (1999). 3226:Economic Origins of Dictatorship and Democracy 2850: 2848: 2249:, especially defining trend/potential output. 560:The government budget surplus or deficit is a 3067:, 7th Ed., Ch. 18 p. 464. McGraw-Hill Irwin, 2532:electorate, or popularity with their donors. 2402:means if the government is single party or a 1636:Organization of Petroleum Exporting Countries 1306:is tax revenue for the respective year, then 1213:is defined as the difference between current 1057:) has to equal the public deficit (spending, 471: 8: 3486:: CS1 maint: multiple names: authors list ( 3229:. Cambridge, UK: Cambridge University Press. 2647:Implemented policy solutions and legislation 2574:Cancellation of part of the debt: bankruptcy 2475:Increase taxes or reduce government spending 2224:, and nominal or cyclically adjusted data. 722:is GDP (production; equivalently, income), 2939:Michael Burda and Charles Wyplosz (1995), 2302:Unemployment rate/output growth/output gap 1770: 478: 464: 58: 47: 3535: 3223:Robinson, James; Acemoglu, Daron (2006). 2616:Overview of the types of policy solutions 2211:Determinants of government budget balance 1600: 1591: 1578: 1559: 1530: 1525: 1523: 1494: 1488: 1475: 1456: 1437: 1432: 1429: 1402: 1375: 1369: 1350: 1341: 1328: 1316: 1314: 1290: 1284: 1263: 1257: 1237: 1111: 980: 915: 832: 773: 664: 3588: 3586: 3584: 3499: 3497: 3438: 3436: 2754:National debt by U.S. presidential terms 1201:Primary deficit, total deficit, and debt 27:Difference between revenues and spending 3569: 3567: 3565: 3563: 3561: 3559: 3557: 3555: 3032: 3030: 2780: 2424:, and therefore high economic welfare. 506:, is the difference between government 50: 3479: 3302: 3291: 3258: 3247: 3163: 3152: 3119: 3108: 2309:Long-term and short-term interest rate 3218: 3216: 3088: 3086: 3084: 3082: 3080: 2702:Current account (balance of payments) 1103:This is represented by the identity: 824:Combining the two perspectives gives 7: 2963:"The myth of the structural deficit" 1193:"Primary balance" is defined by the 897:{\displaystyle C+S+T=Y=C+I+G+(X-M).} 1712:, a measure proposed by economists 3407:O'Brien, Matthew (18 March 2013). 2961:Dillow, Chris (15 February 2010). 2749:National debt of the United States 2744:Fiscal policy of the United States 1039:{\displaystyle (S-I)=(G-T)+(X-M).} 337:Trade / commerce ministry 25: 3022:International Monetary Fund (IMF) 2602:Policy implementations by country 2455:Country-specific and year dummies 1736: 446: 3326:Industrial and Corporate Change 2905:Bill Mitchell, 21 February 2009 1652:Structural and cyclical deficit 2998:AARP article on the fiscal gap 2485:European sovereign debt crisis 2464:11 September terrorist attacks 2293:in most developed countries). 1552: 1540: 1158:{\displaystyle (G-T)=(S-I)-NX} 1143: 1131: 1125: 1113: 1030: 1018: 1012: 1000: 994: 982: 962:{\displaystyle S+T=I+G+(X-M).} 953: 941: 888: 876: 702: 690: 526:, and a negative balance is a 514:. For a government that uses 1: 3537:10.1080/25741292.2018.1540378 3199:10.1016/S0047-2727(01)00143-8 2812:"Issues in Accrual Budgeting" 2764:Taxation in the United States 2548:Reduce debt service liability 2130:, to finance their spending. 1672:. At the lowest point in the 1252:refers to an arbitrary year, 1065:) plus net exports (exports ( 708:{\displaystyle Y=C+I+G+(X-M)} 2791:. Imf.org. 14 September 2006 2769:United States federal budget 2580:Greek government-debt crisis 2382:Government composition index 2247:cyclically adjusted balances 1513:government budget constraint 1053:) minus private investment ( 34:. For payment balances, see 3187:Journal of Public Economics 2973:The Financial Times Limited 2417:Number of political parties 1728:National government budgets 1676:, there is a high level of 1279:is government spending and 551:cyclically-adjusted balance 3640: 3524:Policy Design and Practice 3376:Steven A. Finkler (2005), 2149: 1649: 1094:government budget deficits 496:general government balance 494:, also referred to as the 166:Deficit / surplus 40: 29: 2831:10.1787/budget-v4-art5-en 2819:OECD Journal on Budgeting 1745:This article needs to be 817:is total taxation net of 528:government budget deficit 524:government budget surplus 492:government budget balance 267:Monetary (currency) union 3351:Zach (2 February 2021). 3063:Harvey S. Rosen (2005), 2376:political business cycle 2243:cyclically adjusted data 2107:Before the invention of 3320:Henisz, Witold (2002). 2941:European Macroeconomics 2712:Generational accounting 2449:European monetary union 2428:Overall political index 2297:Macroeconomic variables 2197:Crowding-out hypothesis 1390:{\displaystyle D_{t-1}} 799:{\displaystyle Y=C+S+T} 746:on goods and services, 3301:Cite journal requires 3257:Cite journal requires 3162:Cite journal requires 3118:Cite journal requires 2524: 2174: 2104: 1661: 1605: 1499: 1411: 1391: 1355: 1300: 1273: 1246: 1181:, and is in danger of 1159: 1040: 963: 898: 800: 709: 637:Gross Domestic Product 632: 378:Discretionary spending 3447:Communities in Action 3181:Woo, Jaejoon (2003). 2810:Blöndal, Jón (2004). 2663:the federal deficit. 2482: 2422:economic institutions 2283:Lagged budget balance 2253:Independent variables 2183:Ricardian equivalence 2177:Ricardian equivalence 2102: 1659: 1634:, and members of the 1624:unemployment benefits 1606: 1500: 1412: 1392: 1356: 1301: 1299:{\displaystyle T_{t}} 1274: 1272:{\displaystyle G_{t}} 1247: 1160: 1041: 964: 899: 801: 710: 629: 599:Financial journalist 504:public fiscal balance 500:public budget balance 3338:10.1093/icc/11.2.355 1522: 1428: 1401: 1368: 1313: 1283: 1256: 1236: 1110: 979: 914: 831: 813:is total saving and 772: 663: 3619:Government spending 2968:Investors Chronicle 2873:. 28 December 2011. 2536:Changes in tax code 2356:Political variables 2261:Budgetary variables 2216:Dependent variables 2204:crowding-out effect 1777: 1768:Data are for 2010: 1215:government spending 1082:Modern Money Theory 1061:, minus net taxes, 744:government spending 736:investment spending 36:Balance of payments 3010:U.S. Treasury 2525: 2400:Type of government 2390:right-wing parties 2126:, with consequent 2105: 1771: 1718:Laurence Kotlikoff 1696:structural deficit 1662: 1601: 1495: 1407: 1387: 1351: 1296: 1269: 1242: 1155: 1036: 959: 894: 796: 705: 633: 574:accrual accounting 547:structural balance 516:accrual accounting 383:Mandatory spending 307:Non-tariff barrier 245:Monetary authority 3465:978-0-309-45296-0 3280:. Rochester, NY. 3141:. Rochester, NY. 3097:. Rochester, NY. 2884:Weisenthal, Joe. 2871:Paul Krugman Blog 2727:Sectoral balances 2717:Government budget 2410:Fiscal governance 2386:left-wing parties 2366:political economy 2321:soaring inflation 2291:COVID-19 pandemic 2267:Debt-to-GDP ratio 2092: 2091: 1766: 1765: 1435: 1410:{\displaystyle r} 1319: 1245:{\displaystyle t} 1223:transfer payments 1069:) minus imports ( 819:transfer payments 762:is net exports). 617:sectoral analysis 580:Sectoral balances 532:government budget 488: 487: 429:Fiscal adjustment 16:(Redirected from 3631: 3598: 3597: 3590: 3579: 3578: 3571: 3550: 3549: 3539: 3515: 3509: 3508: 3501: 3492: 3491: 3485: 3477: 3440: 3431: 3430: 3427:"Dette Publique" 3423: 3417: 3416: 3404: 3398: 3395: 3389: 3374: 3368: 3367: 3365: 3363: 3348: 3342: 3341: 3317: 3311: 3310: 3304: 3299: 3297: 3289: 3273: 3267: 3266: 3260: 3255: 3253: 3245: 3237: 3231: 3230: 3220: 3211: 3210: 3193:(3–4): 387–426. 3178: 3172: 3171: 3165: 3160: 3158: 3150: 3134: 3128: 3127: 3121: 3116: 3114: 3106: 3090: 3075: 3061: 3055: 3054: 3051:www.columbia.edu 3043: 3037: 3034: 3025: 3006: 3000: 2995: 2989: 2988: 2986: 2984: 2975:. Archived from 2958: 2952: 2937: 2928: 2927: 2925: 2923: 2918:. stats.oecd.org 2912: 2906: 2900: 2894: 2893: 2890:Business Insider 2881: 2875: 2874: 2863: 2857: 2852: 2843: 2842: 2816: 2807: 2801: 2800: 2798: 2796: 2785: 2759:Starve the beast 2152:Deficit spending 2146:Deficit spending 1778: 1761: 1758: 1752: 1740: 1739: 1732: 1687:cyclical deficit 1610: 1608: 1607: 1602: 1596: 1595: 1583: 1582: 1570: 1569: 1536: 1535: 1534: 1504: 1502: 1501: 1496: 1493: 1492: 1480: 1479: 1467: 1466: 1442: 1441: 1436: 1433: 1416: 1414: 1413: 1408: 1396: 1394: 1393: 1388: 1386: 1385: 1360: 1358: 1357: 1352: 1346: 1345: 1333: 1332: 1320: 1317: 1305: 1303: 1302: 1297: 1295: 1294: 1278: 1276: 1275: 1270: 1268: 1267: 1251: 1249: 1248: 1243: 1179:aggregate demand 1164: 1162: 1161: 1156: 1045: 1043: 1042: 1037: 968: 966: 965: 960: 903: 901: 900: 895: 805: 803: 802: 797: 714: 712: 711: 706: 480: 473: 466: 450: 302:Gains from trade 292:Balance of trade 171:Finance ministry 62: 48: 32:Balance of trade 21: 3639: 3638: 3634: 3633: 3632: 3630: 3629: 3628: 3609: 3608: 3607: 3602: 3601: 3592: 3591: 3582: 3577:. October 2021. 3573: 3572: 3553: 3517: 3516: 3512: 3503: 3502: 3495: 3478: 3466: 3442: 3441: 3434: 3425: 3424: 3420: 3406: 3405: 3401: 3396: 3392: 3375: 3371: 3361: 3359: 3350: 3349: 3345: 3319: 3318: 3314: 3300: 3290: 3275: 3274: 3270: 3256: 3246: 3239: 3238: 3234: 3222: 3221: 3214: 3180: 3179: 3175: 3161: 3151: 3136: 3135: 3131: 3117: 3107: 3092: 3091: 3078: 3062: 3058: 3045: 3044: 3040: 3035: 3028: 3007: 3003: 2996: 2992: 2982: 2980: 2960: 2959: 2955: 2938: 2931: 2921: 2919: 2914: 2913: 2909: 2901: 2897: 2883: 2882: 2878: 2865: 2864: 2860: 2853: 2846: 2814: 2809: 2808: 2804: 2794: 2792: 2787: 2786: 2782: 2777: 2693: 2649: 2618: 2609: 2604: 2592: 2576: 2567: 2565:Balanced budget 2558:balanced budget 2550: 2538: 2477: 2472: 2439:Dummy variables 2436: 2434:Dummy variables 2420:determinant of 2394:progressive tax 2358: 2299: 2287:public finances 2263: 2255: 2237:Concerning the 2218: 2213: 2199: 2179: 2158:William Vickrey 2154: 2148: 2097: 1799:Balance/Revenue 1796:Expenditure/GDP 1776: 1762: 1756: 1753: 1750: 1741: 1737: 1730: 1682:social security 1654: 1648: 1619:Economic trends 1587: 1574: 1555: 1526: 1520: 1519: 1484: 1471: 1452: 1431: 1426: 1425: 1399: 1398: 1371: 1366: 1365: 1337: 1324: 1318:Primary deficit 1311: 1310: 1286: 1281: 1280: 1259: 1254: 1253: 1234: 1233: 1211:primary deficit 1203: 1191: 1189:Primary balance 1108: 1107: 977: 976: 912: 911: 829: 828: 770: 769: 754:is imports (so 750:is exports and 661: 660: 653:government debt 582: 566:government debt 549:(also known as 543:primary balance 520:cash accounting 484: 439: 438: 434:Monetary reform 424: 416: 415: 411:Price stability 406:Economic growth 401:Balanced budget 396: 388: 387: 368:Non-tax revenue 363: 362: 342: 341: 332:Trade diversion 287: 277: 276: 230:Discount window 213: 211:Monetary policy 203: 202: 137: 127: 126: 72: 46: 43:Government debt 39: 28: 23: 22: 18:Primary deficit 15: 12: 11: 5: 3637: 3635: 3627: 3626: 3621: 3611: 3610: 3606: 3605:External links 3603: 3600: 3599: 3580: 3551: 3510: 3493: 3464: 3456:10.17226/24624 3432: 3418: 3399: 3390: 3369: 3343: 3332:(2): 355–389. 3312: 3303:|journal= 3268: 3259:|journal= 3232: 3212: 3173: 3164:|journal= 3129: 3120:|journal= 3076: 3065:Public Finance 3056: 3038: 3026: 3001: 2990: 2979:on 31 May 2014 2953: 2929: 2907: 2895: 2876: 2858: 2844: 2825:(1): 103–119. 2802: 2789:"IMF database" 2779: 2778: 2776: 2773: 2772: 2771: 2766: 2761: 2756: 2751: 2746: 2741: 2735: 2734: 2730: 2729: 2724: 2722:Public finance 2719: 2714: 2709: 2704: 2699: 2692: 2689: 2648: 2645: 2640: 2639: 2635: 2631: 2627: 2623: 2617: 2614: 2608: 2605: 2603: 2600: 2591: 2588: 2575: 2572: 2566: 2563: 2549: 2546: 2537: 2534: 2509:United Kingdom 2476: 2473: 2471: 2468: 2435: 2432: 2357: 2354: 2350:interest rates 2298: 2295: 2262: 2259: 2254: 2251: 2228:The debt ratio 2217: 2214: 2212: 2209: 2198: 2195: 2178: 2175: 2150:Main article: 2147: 2144: 2117:Peruzzi family 2096: 2095:Early deficits 2093: 2090: 2089: 2086: 2083: 2080: 2077: 2074: 2071: 2068: 2064: 2063: 2060: 2057: 2054: 2051: 2048: 2045: 2042: 2038: 2037: 2034: 2031: 2028: 2025: 2022: 2019: 2016: 2012: 2011: 2008: 2005: 2002: 1999: 1996: 1993: 1990: 1986: 1985: 1982: 1979: 1976: 1973: 1970: 1967: 1964: 1960: 1959: 1956: 1953: 1950: 1947: 1944: 1941: 1938: 1934: 1933: 1930: 1927: 1924: 1921: 1918: 1915: 1912: 1911:United Kingdom 1908: 1907: 1904: 1901: 1898: 1895: 1892: 1889: 1886: 1882: 1881: 1878: 1875: 1872: 1869: 1866: 1863: 1860: 1856: 1855: 1852: 1849: 1846: 1843: 1840: 1837: 1834: 1830: 1829: 1826: 1823: 1820: 1817: 1814: 1811: 1808: 1804: 1803: 1800: 1797: 1794: 1793:Budget balance 1791: 1788: 1785: 1782: 1772: 1764: 1763: 1744: 1742: 1735: 1729: 1726: 1674:business cycle 1650:Main article: 1647: 1644: 1612: 1611: 1599: 1594: 1590: 1586: 1581: 1577: 1573: 1568: 1565: 1562: 1558: 1554: 1551: 1548: 1545: 1542: 1539: 1533: 1529: 1506: 1505: 1491: 1487: 1483: 1478: 1474: 1470: 1465: 1462: 1459: 1455: 1451: 1448: 1445: 1440: 1406: 1384: 1381: 1378: 1374: 1362: 1361: 1349: 1344: 1340: 1336: 1331: 1327: 1323: 1293: 1289: 1266: 1262: 1241: 1232:Therefore, if 1202: 1199: 1190: 1187: 1166: 1165: 1154: 1151: 1148: 1145: 1142: 1139: 1136: 1133: 1130: 1127: 1124: 1121: 1118: 1115: 1078:macroeconomics 1047: 1046: 1035: 1032: 1029: 1026: 1023: 1020: 1017: 1014: 1011: 1008: 1005: 1002: 999: 996: 993: 990: 987: 984: 970: 969: 958: 955: 952: 949: 946: 943: 940: 937: 934: 931: 928: 925: 922: 919: 905: 904: 893: 890: 887: 884: 881: 878: 875: 872: 869: 866: 863: 860: 857: 854: 851: 848: 845: 842: 839: 836: 807: 806: 795: 792: 789: 786: 783: 780: 777: 716: 715: 704: 701: 698: 695: 692: 689: 686: 683: 680: 677: 674: 671: 668: 649:public deficit 647:(example: the 586:private sector 581: 578: 570:stock variable 536:financial year 486: 485: 483: 482: 475: 468: 460: 457: 456: 455: 454: 441: 440: 437: 436: 431: 425: 422: 421: 418: 417: 414: 413: 408: 403: 397: 394: 393: 390: 389: 386: 385: 380: 375: 370: 364: 361: 360: 355: 349: 348: 347: 344: 343: 340: 339: 334: 329: 327:Trade creation 324: 319: 314: 309: 304: 299: 294: 288: 283: 282: 279: 278: 275: 274: 269: 264: 259: 258: 257: 255:currency board 252: 242: 237: 232: 227: 226: 225: 214: 209: 208: 205: 204: 201: 200: 195: 194: 193: 183: 178: 173: 168: 163: 162: 161: 151: 150: 149: 138: 133: 132: 129: 128: 125: 124: 119: 114: 109: 104: 99: 94: 89: 84: 79: 73: 68: 67: 64: 63: 55: 54: 52:Public finance 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 3636: 3625: 3622: 3620: 3617: 3616: 3614: 3604: 3595: 3589: 3587: 3585: 3581: 3576: 3570: 3568: 3566: 3564: 3562: 3560: 3558: 3556: 3552: 3547: 3543: 3538: 3533: 3529: 3525: 3521: 3514: 3511: 3506: 3500: 3498: 3494: 3489: 3483: 3475: 3471: 3467: 3461: 3457: 3453: 3449: 3448: 3439: 3437: 3433: 3428: 3422: 3419: 3414: 3410: 3403: 3400: 3394: 3391: 3387: 3386:0-13-147198-8 3383: 3379: 3373: 3370: 3358: 3354: 3347: 3344: 3339: 3335: 3331: 3327: 3323: 3316: 3313: 3308: 3295: 3287: 3283: 3279: 3272: 3269: 3264: 3251: 3243: 3236: 3233: 3228: 3227: 3219: 3217: 3213: 3208: 3204: 3200: 3196: 3192: 3188: 3184: 3177: 3174: 3169: 3156: 3148: 3144: 3140: 3133: 3130: 3125: 3112: 3104: 3100: 3096: 3089: 3087: 3085: 3083: 3081: 3077: 3074: 3073:0-07-287648-4 3070: 3066: 3060: 3057: 3052: 3048: 3042: 3039: 3033: 3031: 3027: 3023: 3019: 3015: 3011: 3005: 3002: 2999: 2994: 2991: 2978: 2974: 2970: 2969: 2964: 2957: 2954: 2950: 2949:0-19-877468-0 2946: 2942: 2936: 2934: 2930: 2917: 2911: 2908: 2904: 2899: 2896: 2891: 2887: 2880: 2877: 2872: 2868: 2867:"The Problem" 2862: 2859: 2856: 2851: 2849: 2845: 2840: 2836: 2832: 2828: 2824: 2820: 2813: 2806: 2803: 2790: 2784: 2781: 2774: 2770: 2767: 2765: 2762: 2760: 2757: 2755: 2752: 2750: 2747: 2745: 2742: 2740: 2737: 2736: 2733:U.S. specific 2732: 2731: 2728: 2725: 2723: 2720: 2718: 2715: 2713: 2710: 2708: 2707:Fiscal policy 2705: 2703: 2700: 2698: 2697:Budget crisis 2695: 2694: 2690: 2688: 2684: 2680: 2676: 2672: 2668: 2664: 2660: 2656: 2652: 2646: 2644: 2636: 2632: 2628: 2624: 2620: 2619: 2615: 2613: 2607:United States 2606: 2601: 2599: 2597: 2589: 2587: 2585: 2581: 2573: 2571: 2564: 2562: 2559: 2554: 2547: 2545: 2543: 2535: 2533: 2529: 2522: 2521:United States 2518: 2514: 2510: 2506: 2502: 2498: 2494: 2490: 2486: 2481: 2474: 2469: 2467: 2465: 2461: 2456: 2452: 2450: 2446: 2445:Run-up to EMU 2442: 2440: 2433: 2431: 2429: 2425: 2423: 2418: 2414: 2411: 2407: 2405: 2401: 2397: 2395: 2391: 2387: 2383: 2379: 2377: 2373: 2372:Election year 2369: 2367: 2363: 2355: 2353: 2351: 2347: 2343: 2339: 2335: 2334:Welfare level 2331: 2328: 2324: 2322: 2317: 2313: 2310: 2306: 2303: 2296: 2294: 2292: 2288: 2284: 2280: 2277: 2273: 2272:fiscal policy 2269: 2268: 2260: 2258: 2252: 2250: 2248: 2244: 2240: 2235: 2233: 2232:stock markets 2229: 2225: 2223: 2215: 2210: 2208: 2205: 2196: 2194: 2190: 2188: 2187:David Ricardo 2184: 2176: 2173: 2169: 2165: 2161: 2159: 2153: 2145: 2143: 2141: 2140:Treasury bill 2138:and American 2137: 2131: 2129: 2125: 2120: 2118: 2114: 2110: 2101: 2094: 2087: 2084: 2081: 2078: 2075: 2072: 2069: 2066: 2065: 2061: 2058: 2055: 2052: 2049: 2046: 2043: 2040: 2039: 2035: 2032: 2029: 2026: 2023: 2020: 2017: 2014: 2013: 2009: 2006: 2003: 2000: 1997: 1994: 1991: 1988: 1987: 1983: 1980: 1977: 1974: 1971: 1968: 1965: 1962: 1961: 1957: 1954: 1951: 1948: 1945: 1942: 1939: 1936: 1935: 1931: 1928: 1925: 1922: 1919: 1916: 1913: 1910: 1909: 1905: 1902: 1899: 1896: 1893: 1890: 1887: 1884: 1883: 1879: 1876: 1873: 1870: 1867: 1864: 1861: 1858: 1857: 1853: 1850: 1847: 1844: 1841: 1838: 1835: 1832: 1831: 1827: 1824: 1821: 1818: 1815: 1812: 1809: 1806: 1805: 1801: 1798: 1795: 1792: 1789: 1786: 1783: 1780: 1779: 1775: 1769: 1760: 1757:November 2011 1748: 1743: 1734: 1733: 1727: 1725: 1721: 1719: 1715: 1714:Alan Auerbach 1711: 1710: 1704: 1701: 1698: 1697: 1691: 1689: 1688: 1683: 1679: 1675: 1671: 1667: 1658: 1653: 1645: 1643: 1639: 1637: 1633: 1629: 1625: 1620: 1616: 1597: 1592: 1588: 1584: 1579: 1575: 1571: 1566: 1563: 1560: 1556: 1549: 1546: 1543: 1537: 1531: 1527: 1518: 1517: 1516: 1514: 1509: 1489: 1485: 1481: 1476: 1472: 1468: 1463: 1460: 1457: 1453: 1449: 1446: 1443: 1438: 1434:Total deficit 1424: 1423: 1422: 1420: 1404: 1382: 1379: 1376: 1372: 1347: 1342: 1338: 1334: 1329: 1325: 1321: 1309: 1308: 1307: 1291: 1287: 1264: 1260: 1239: 1230: 1228: 1227:total deficit 1224: 1220: 1216: 1212: 1207: 1200: 1198: 1196: 1188: 1186: 1184: 1180: 1174: 1171: 1152: 1149: 1146: 1140: 1137: 1134: 1128: 1122: 1119: 1116: 1106: 1105: 1104: 1101: 1098: 1095: 1089: 1087: 1083: 1079: 1074: 1072: 1068: 1064: 1060: 1056: 1052: 1033: 1027: 1024: 1021: 1015: 1009: 1006: 1003: 997: 991: 988: 985: 975: 974: 973: 956: 950: 947: 944: 938: 935: 932: 929: 926: 923: 920: 917: 910: 909: 908: 891: 885: 882: 879: 873: 870: 867: 864: 861: 858: 855: 852: 849: 846: 843: 840: 837: 834: 827: 826: 825: 822: 820: 816: 812: 793: 790: 787: 784: 781: 778: 775: 768: 767: 766: 763: 761: 757: 753: 749: 745: 741: 737: 733: 729: 725: 721: 699: 696: 693: 687: 684: 681: 678: 675: 672: 669: 666: 659: 658: 657: 654: 650: 646: 642: 638: 628: 624: 622: 618: 613: 610: 605: 602: 597: 595: 594:trade deficit 591: 587: 579: 577: 575: 571: 568:, which is a 567: 563: 562:flow variable 558: 556: 552: 548: 544: 539: 537: 533: 529: 525: 521: 518:(rather than 517: 513: 509: 505: 501: 497: 493: 481: 476: 474: 469: 467: 462: 461: 459: 458: 453: 449: 445: 444: 443: 442: 435: 432: 430: 427: 426: 420: 419: 412: 409: 407: 404: 402: 399: 398: 392: 391: 384: 381: 379: 376: 374: 371: 369: 366: 365: 359: 356: 354: 351: 350: 346: 345: 338: 335: 333: 330: 328: 325: 323: 320: 318: 315: 313: 312:Protectionism 310: 308: 305: 303: 300: 298: 295: 293: 290: 289: 286: 281: 280: 273: 270: 268: 265: 263: 262:Monetary base 260: 256: 253: 251: 248: 247: 246: 243: 241: 240:Interest rate 238: 236: 235:Gold reserves 233: 231: 228: 224: 221: 220: 219: 218:Bank reserves 216: 215: 212: 207: 206: 199: 196: 192: 189: 188: 187: 184: 182: 179: 177: 174: 172: 169: 167: 164: 160: 157: 156: 155: 152: 148: 145: 144: 143: 140: 139: 136: 135:Fiscal policy 131: 130: 123: 120: 118: 115: 113: 110: 108: 105: 103: 100: 98: 95: 93: 90: 88: 85: 83: 80: 78: 75: 74: 71: 66: 65: 61: 57: 56: 53: 49: 44: 37: 33: 19: 3527: 3523: 3513: 3446: 3421: 3413:The Atlantic 3412: 3402: 3393: 3377: 3372: 3360:. Retrieved 3356: 3346: 3329: 3325: 3315: 3294:cite journal 3271: 3250:cite journal 3235: 3225: 3190: 3186: 3176: 3155:cite journal 3132: 3111:cite journal 3064: 3059: 3050: 3041: 3004: 2993: 2981:. Retrieved 2977:the original 2966: 2956: 2940: 2920:. Retrieved 2910: 2898: 2889: 2879: 2870: 2861: 2822: 2818: 2805: 2793:. Retrieved 2783: 2739:Deficit hawk 2685: 2681: 2677: 2673: 2669: 2665: 2661: 2657: 2653: 2650: 2641: 2610: 2593: 2577: 2568: 2555: 2551: 2539: 2530: 2526: 2515:against the 2462:in 1970s or 2454: 2453: 2444: 2443: 2437: 2427: 2426: 2416: 2415: 2409: 2408: 2399: 2398: 2381: 2380: 2371: 2370: 2361: 2359: 2333: 2332: 2327:Asset prices 2326: 2325: 2315: 2314: 2308: 2307: 2301: 2300: 2282: 2281: 2265: 2264: 2256: 2242: 2238: 2236: 2227: 2226: 2219: 2200: 2191: 2180: 2170: 2166: 2163: 2155: 2132: 2121: 2106: 1807:US (federal) 1802:Balance/GDP 1773: 1767: 1754: 1746: 1722: 1707: 1705: 1702: 1694: 1692: 1685: 1678:unemployment 1669: 1665: 1663: 1640: 1617: 1613: 1512: 1510: 1507: 1418: 1363: 1231: 1226: 1210: 1208: 1204: 1192: 1175: 1169: 1167: 1102: 1099: 1090: 1086:central bank 1075: 1070: 1066: 1062: 1058: 1054: 1050: 1048: 971: 906: 823: 814: 810: 808: 764: 759: 755: 751: 747: 739: 731: 723: 719: 717: 643:rather than 634: 621:Wynne Godley 614: 609:Paul Krugman 606: 598: 583: 559: 550: 546: 542: 540: 527: 523: 503: 499: 495: 491: 489: 285:Trade policy 272:Money supply 250:central bank 223:requirements 176:Fiscal union 77:Agricultural 2634:resistance. 2578:During the 2523:(2000–2013) 2067:South Korea 1790:Expenditure 734:is private 728:consumption 601:Martin Wolf 373:Tax revenue 3613:Categories 2795:1 February 2775:References 2542:deductions 2460:oil shocks 2113:Rothschild 1833:US (state) 1709:fiscal gap 1666:structural 730:spending, 607:Economist 590:definition 322:Trade bloc 297:Free trade 122:Policy mix 97:Investment 92:Industrial 3546:188057401 3482:cite book 3357:Statology 3244:: 81–102. 3207:0047-2727 2922:14 August 2839:1608-7143 2659:deficit. 2596:inflation 2590:Inflation 2404:coalition 2316:Inflation 2276:creditors 2128:inflation 1585:− 1564:− 1482:− 1461:− 1450:⋅ 1380:− 1335:− 1183:inflation 1147:− 1138:− 1120:− 1025:− 1007:− 989:− 948:− 883:− 697:− 3530:: 1–14. 3474:28418632 3362:28 April 3024:website. 2691:See also 2622:debated. 2519:and the 2517:Eurozone 2497:Portugal 1670:cyclical 631:deficit. 555:real GDP 512:spending 508:revenues 358:Spending 186:Spending 159:internal 117:Monetary 82:Economic 70:Policies 3014:website 2584:haircut 2513:Ireland 2362:de jure 2338:welfare 2239:nominal 2172:houses. 2142:bonds. 2136:Consols 1885:Germany 1787:Revenue 1747:updated 1221:net of 395:Optimum 353:Revenue 191:deficit 181:Revenue 3544: 3472: 3462: 3384: 3286:617812 3284: 3205: 3147:358441 3145: 3103:631669 3101: 3071: 2983:19 May 2947: 2837: 2638:party. 2505:Greece 2493:Cyprus 2342:Greece 2088:+2.9% 2062:-3.1% 2041:Canada 2036:-4.6% 2010:+5.1% 1984:-3.5% 1958:-1.7% 1937:France 1932:-3.3% 1906:+6.1% 1880:+3.6% 1877:-24.9% 1854:+0.4% 1836:14,526 1828:-8.9% 1825:14.88% 1819:-1,293 1810:14,526 1781:Nation 1632:Russia 1628:Norway 1225:. The 1168:where 1080:, the 907:Hence 809:where 718:where 645:stocks 452:Portal 423:Reform 317:Tariff 147:policy 142:Budget 112:Fiscal 102:Social 87:Energy 3542:S2CID 2815:(PDF) 2501:Spain 2489:Italy 2346:Japan 2222:debts 2124:money 2109:bonds 2085:-3.3% 2082:25.8% 2059:+4.0% 2056:16.0% 2033:-0.5% 2030:38.6% 2018:1,000 2015:Spain 2007:-9.7% 2004:21.8% 1992:1,600 1989:China 1981:-6.8% 1978:51.3% 1966:1,600 1963:Italy 1955:-7.5% 1952:54.0% 1946:1,080 1943:1,005 1940:2,000 1929:-7.4% 1926:42.7% 1914:2,100 1903:-8.3% 1900:48.2% 1894:1,300 1891:1,200 1888:2,700 1874:38.0% 1868:1,748 1865:1,400 1862:4,600 1859:Japan 1851:+5.6% 1822:23.8% 1816:3,456 1813:2,162 1219:taxes 641:flows 635:GDP ( 502:, or 107:Trade 3488:link 3470:PMID 3460:ISBN 3382:ISBN 3364:2022 3307:help 3282:SSRN 3263:help 3203:ISSN 3168:help 3143:SSRN 3124:help 3099:SSRN 3069:ISBN 2985:2013 2945:ISBN 2924:2011 2835:ISSN 2797:2013 2511:and 2344:and 2181:The 1897:+199 1871:+195 1848:7.6% 1716:and 1706:The 1693:The 1668:and 1209:The 530:. A 510:and 490:The 154:Debt 3624:Tax 3532:doi 3452:doi 3334:doi 3195:doi 2827:doi 2241:or 2119:). 2079:+29 2076:155 2073:150 2070:600 2053:-49 2050:144 2047:150 2044:900 2027:-64 2024:386 2021:384 2001:-31 1998:349 1995:318 1975:-72 1972:820 1969:768 1949:-44 1923:-75 1920:897 1917:835 1845:+50 1842:850 1839:900 1784:GDP 1421:is 1364:If 1076:In 742:is 726:is 576:). 498:, 198:Tax 3615:: 3583:^ 3554:^ 3540:. 3526:. 3522:. 3496:^ 3484:}} 3480:{{ 3468:. 3458:. 3450:. 3435:^ 3411:. 3355:. 3330:11 3328:. 3324:. 3298:: 3296:}} 3292:{{ 3254:: 3252:}} 3248:{{ 3215:^ 3201:. 3191:87 3189:. 3185:. 3159:: 3157:}} 3153:{{ 3115:: 3113:}} 3109:{{ 3079:^ 3049:. 3029:^ 2971:. 2965:. 2932:^ 2888:. 2869:. 2847:^ 2833:. 2821:. 2817:. 2556:A 2507:, 2503:, 2499:, 2495:, 2491:, 2487:: 2466:. 2368:. 1630:, 1515:: 1170:NX 821:. 758:– 738:, 623:. 538:. 3596:. 3548:. 3534:: 3528:2 3507:. 3490:) 3476:. 3454:: 3429:. 3415:. 3388:. 3366:. 3340:. 3336:: 3309:) 3305:( 3288:. 3265:) 3261:( 3209:. 3197:: 3170:) 3166:( 3149:. 3126:) 3122:( 3105:. 3053:. 2987:. 2951:. 2926:. 2892:. 2841:. 2829:: 2823:4 2799:. 2626:. 1759:) 1755:( 1749:. 1598:. 1593:t 1589:T 1580:t 1576:G 1572:+ 1567:1 1561:t 1557:D 1553:) 1550:r 1547:+ 1544:1 1541:( 1538:= 1532:t 1528:D 1490:t 1486:T 1477:t 1473:G 1469:+ 1464:1 1458:t 1454:D 1447:r 1444:= 1439:t 1419:t 1405:r 1383:1 1377:t 1373:D 1348:. 1343:t 1339:T 1330:t 1326:G 1322:= 1292:t 1288:T 1265:t 1261:G 1240:t 1153:X 1150:N 1144:) 1141:I 1135:S 1132:( 1129:= 1126:) 1123:T 1117:G 1114:( 1071:M 1067:X 1063:T 1059:G 1055:I 1051:S 1034:. 1031:) 1028:M 1022:X 1019:( 1016:+ 1013:) 1010:T 1004:G 1001:( 998:= 995:) 992:I 986:S 983:( 957:. 954:) 951:M 945:X 942:( 939:+ 936:G 933:+ 930:I 927:= 924:T 921:+ 918:S 892:. 889:) 886:M 880:X 877:( 874:+ 871:G 868:+ 865:I 862:+ 859:C 856:= 853:Y 850:= 847:T 844:+ 841:S 838:+ 835:C 815:T 811:S 794:T 791:+ 788:S 785:+ 782:C 779:= 776:Y 760:M 756:X 752:M 748:X 740:G 732:I 724:C 720:Y 703:) 700:M 694:X 691:( 688:+ 685:G 682:+ 679:I 676:+ 673:C 670:= 667:Y 479:e 472:t 465:v 45:. 38:. 20:)

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.

Index