The relationship between fiscal imbalances and other macroeconomic variables is complex and multifaceted.
But it does not credibly address the country's long-term fiscal imbalances, which require cuts in Medicare and Social Security.
Using panel data over 1970 2000, it finds that fiscal imbalances have a significant effect on FX pressures in LAC but not in EAP.
We need to resist those policies that could readily resurrect the deficits of the past and the fiscal imbalances that followed in their wake.
These proposals alone would consume nearly the entire surplus, as would closing long-term fiscal imbalances in Social Security and Medicare.
Kent Conrad: I'm hopeful because, as a country, we need to address the fiscal imbalances that we all know are there.
Fiscal imbalances were a result of the financial crisis, not a cause of it: public bailouts accounted for a large part of Ireland and Spain's deficit.
Fitch said that its decision, which followed a similar one by Moody's, reflected "large fiscal imbalances, high indebtedness across all sectors and adverse macroeconomic outlook" facing Portugal.
Meanwhile, he added, America "is growing slowly, weighed down by debt and the pervasive uncertainty caused by our nation's fiscal imbalances and growing regulatory complexity.
Ultimately, to respond to their fiscal imbalances, many state and local policymakers will need to make painful cuts in financing for state universities, hospitals, local schools and municipalities.
But the current and future fiscal imbalances are too large to exempt 98 percent or more of the public from being part of the solution.
