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 abov...

This paper examines the relationship between debt-GDP ratio and twin deficits during 1971-2021 in context of present economic crisis Sri Lanka using techniques cointegration error correction model. The results study indicate existence a long run among these variables. A fiscal deficit tends to increase run, whereas short there is no evidence any impact on ratio. current account expected raise r...

Abstract There is growing research on the political budget cycles in transition economies whose institutions, and societies differ significantly from those of developed countries. New democracies are more vulnerable to (fiscal) cycles. Most studies focus policy instruments (e.g. fiscal policies) rather than macroeconomic outcomes. In this paper, we analyse budget/fiscal cycle Albania, a post-co...

Discussions of fiscal policy often originate with central banks. This conference is organized by one; the Bank of England was created to help the British government finance its deficit; and it was in the Federal Reserve Bank of Minneapolis’ Quarterly Review that in 1981, Tom Sargent and Neil Wallace published their well-known article “Some Unpleasant Monetarist Arithmetic.” Their basic proposit...

This paper sets out to provide an introduction to two sets of questions, and to some relevant literature that has tried to answer them. The first set of questions concern what determines growth in low-income countries, and how the answers are conditioned by the history of fiscal policy design (public capital, debt and deficit management, for example). The second (related) set of questions conce...

The main purpose of the study is to examine the causal relationship between government revenues and expenditures of the Jordan government over the period from 1990 to 2011 using Granger causality and VECM tests methodology. Which provides channels of causation between government revenues (GR) and government expenditures (GE).The empirical results show that bidirectional causality running betwee...

Recent macro developments in the euro area have highlighted the interactions between fiscal policy, sovereign debt, and financial fragility. We take a structural macroeconomic model with frictions in the financial intermediation process, in line with recent research, but introduce asset choice and sovereign debt holdings in the portfolio of banks. Using this model, we emphasize a new crowding-o...

Mary Downs, Executive Director Mark Cohen, Director of Communications Craig Hanna, Director of Public Policy Cori Uccello, Senior Health Fellow Heather Jerbi, Senior Health Policy Analyst An Actuarial Perspective on Proposals to Improve Medicare’s Financial Condition Medicare plays a critically important role in ensuring access to health care among Americans age 65 and older and certain younger...

This paper asks whether political competition has played a role in moderating the governance issues that arise in relation to Canada’s fiscal structure. By fiscal structure we mean three distinct but interrelated fiscal dimensions of the state: financial stability, long run size and short run interventions into the private economy, particularly with respect to the business cycle. The distinctiv...