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Exact(14)
"It's not funded through deficit spending, or from raising taxes.
The centre can exert control indirectly through deficit targets and the right to veto borrowing.
Others arise from the government's efforts to spend its way out of economic trouble through deficit budgeting.
But party leaders ultimately relented under political and public pressure, and much of the aid was delivered through deficit spending.
Thanks to the euro, the E.C.B. controls both of those things, and also sets targets to prevent any other kind of stimulus through deficit spending.
Mr. Brown noted that the United States, China, Japan, India and European countries were all seeking to bolster growth through deficit spending.
Similar(46)
But the way to solve that problem, he argues, is not through deficit-financed demand stimulus but by leaning on the Chinas of the world to knock it off.Into the discussion, then, plunges Mr Krugman.
A strategy of driving down discount rates to inflate asset values benefits those who hold assets — very disproportionately the wealthy.The last option to address stagnation is to have the government soak up excess savings and boost demand through deficit-financed public investment.The third option is quite clearly Mr Summers' preferred course of action.
Sadly even many experts do not precisely understand the benefits and risks of government financing through deficits.
Both public sector surpluses and current account deficits (CADs) draw demand out of the private sector; the only way it can grow is through deficits, via increased indebtedness and reduced savings (the sectorial accounting approach).
First-term governors in states which finance a higher percentage of their expenditures through deficits have almost the same acceptance rate as the full sample.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com