Deficits and the Economy
ثبت نشده
چکیده
Two years after speaking those words, President Reagan remains further from controlling the budget deficit than any President has ever been. The reasons for this are numerous and debatable. The direct result, however, is clear -a $110 billion deficit for Fiscal Year 1982, the largest deficit ever. Unfortunately, the record will not stand for long. By any estimate, the deficits will be well above the $110 billion level through FY '88; if Congress does not approve Reagan's budget requests, the deficits will easily be more than double the FY '82 record. The budget monster, apparently, will remain uncontrolled for a long time.
منابع مشابه
Deficits, Debt Financing, Monetary Policy and Inflation in Developing Countries: Internal or External Factors? Evidence from Iran
This paper focuses on internal and external factors, which influence the inflation rate in developing countries. A monetary model of inflation rate, capable of incorporating both monetary and fiscal policies as well as other internal and external factors, was developed and tested on Iranian data. It was found that, over the long run, a higher exchange rate leads to a higher price and that the f...
متن کاملThe Fiscal Dominance through Banking System: A Case Study on the Relationship between Government and Banking System in Iran’s Economy
ran's economy still has a two-digit inflation rate with high fluctuations, which is mainly caused by fiscal dominance. According to the relevant literature, the most important fiscal dominance mechanism is borrowing from the central bank. After prohibiting direct borrowing from the Central Bank by Iran's government, the budget deficits are partially addressed by off-budgeting operations, achiev...
متن کاملThe Effect of Macroeconomic Shocks on Inflation in Iran: A Vector Autoregressive Approach with Dynamic Parameters
Given the effects of inflation on the decline of household welfare and its impact on production and investment, identifying the factors affecting it in order to adjust inflation and achieve price stability is necessary. Therefore, using the TVP-FAVAR model, which differentiates the fluctuations in factors affecting inflation, we try to identify the effects of different shocks such as liquidity,...
متن کاملFederal Government Budget as a Share of GNP
EDEIIAL budget deficits of $200 billion or more have created considerable controversy and confusion among analysts, policvrnakers and voters. The important problem, of course, concerns the consequences of current and projected spending, receipts and deficits. Public concern about these problems began, however, with the ballooning of deficits in 1982 and 1983. Many analysts conjecture that recen...
متن کاملGovernment Finances and Economic Growth: a Policy Perspective on the Developing Economy of Sri Lanka
In this paper, we analyse the fiscal policy orientation of the developing economy of Sri Lanka in the context of the growth performance of the economy during the period 1975-2000, using an integrated input-output and macroeconometric model. The paper draws upon the Government’s policy approach towards faster economic growth. The empirical findings show that the Government’s budget deficits are ...
متن کاملThe Optimal Share of Property Rights Protection Expenditure in Total Government Spending: The Case of Iran
Abstract The main purpose of this paper is to obtain the optimal amount of expenses of government relating to the protection of property rights (PPRs). To achieve these purposes we have introduced concept of social intelligence with respect to PPRs and then developed different growth model from existing literature. In the second step the optimal share of government spending on the PPRs is calcu...
متن کامل