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The effect of the financial crisis was far greater than the effect of the deficit.
More worrying was the effect of the deficit on future foreign financing, after the recent leap in Argentina's country risk, the interest-rate spread between its government's (dollar) bonds and those of the United States.
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Both George Bush and Jacques Chirac believe in cutting taxes irrespective of the effect on the deficit.
Though he may publicly bemoan the economic effects of the deficit, the long-term political effects could suit his party just fine.
Worries about the possible long-term effects of the deficit have galvanized political debate in recent days, culminating in President Obama's decision to create a bipartisan commission to tame the nation's debt.
The point is that under normal, non-liquidity-trap conditions, the direct effects of the deficit on aggregate demand are by no means the whole story; it matters whether the government can issue bonds or has to rely on the printing press.
As has been widely publicized, the Bush-era deficits reversed the effects of the deficit reduction from the Clinton years.
The Clinton administration decided to list the money held in the universal service accounts on the federal budget, which had the effect of reducing the deficit by billions of dollars.
He defended the coalition's austerity measures, saying the programme of spending cuts, tax rises and pay freezes was already having the desired effect of reducing the deficit.
To strengthen the dollar, Boutwell, backed by Grant, sold gold from the Treasury each month and bought back high-interest Treasury bonds issued during the war; this had the effect of reducing the deficit, but deflating the currency.
We tested the effects of the deficits in entrainment and masking found in Adcyap1−/− mice on their behavioral adaptation.
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