Back to the macroeconomic ’90s? Lower deficits can again create more growth
Washington’s reliance on deficit spending is a rare bipartisan habit, but it’s unlikely to change, whatever the outcome of the November elections: There is a strong belief on both sides of the political divide that fiscal consolidation, whether through spending cuts or tax hikes, reduces growth. But what this political consensus misses are the circumstances […]
Baltimore Port’s Closure Threatens Inflation and Bigger Deficits
The Port of Baltimore has been crippled by the collapse of the Francis Scott Key Bridge, posing a risk to the U.S. economy of further inflation, reduced production capacity, and widening government deficits. The Port of Baltimore was the 17th busiest port in the nation by gross tonnage in 2021. Latest data Available from the […]
Tunisia wants to borrow billions from its central bank to address deficits. Experts call that risky
TUNISIA, Tunisia (AP) — Cash-strapped Tunisia wants to take the unprecedented step of borrowing billions of dollars from its central bank to address its budget deficit and bandage its economic crisis. However, experts have warned that the measures could lead to inflation and reduce confidence in the system. Parliament’s Finance Committee held an emergency meeting […]
High US fiscal deficits expected ahead of 2024 elections: Fitch
Ratings agency Fitch said on Wednesday it expects the U.S. budget deficit to remain high this year and that the impact of the presidential election on fiscal policy and governance will be a key issue for the country's sovereign rating. Last year, Fitch downgraded the U.S. government's top credit rating from “AAA'' to “AA+,'' citing […]