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When they lend, they help finance spending and investment.
Profitable publicly-owned assets and industries can also finance spending without resorting to taxation.
But this time, there is no proposal for how to finance spending on those projects.
A current account deficit represents, essentially, a nation living beyond its means: taking on debt in order to finance spending.
Even if there were a desire to borrow to finance spending, banks might be unwilling to meet it.
Ultimately, a current-account deficit represents a country flogging its assets or incurring debts to finance spending.
Similar(15)
They earned less than other groups, were more excluded from banks and other finance, spent fewer years in school and had lower literacy rates.
Chief executive officers must feel comfortable holding marketing programs to the same rigorous fiscal discipline to which they hold purchasing or finance: Spend no money on a marketing program until a clear way to track results is in place.
There is thus a risk that "climate finance" spent on adaptation is actually increasing emissions levels.
Centenarians' advice is seemingly evident when it comes to personal finance: Spend less and save more.
The measure, signed into law by Mr. DiFrancesco, also provided an additional $1.4 million to any candidates abiding by public campaign-finance spending limits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com