AVOIDING THE HIGH DEBT – LOW GROWTH TRAP: LESSONS
... that high levels of debt are associated with lower growth was not questioned at all. This result is underpinned by several other empirical studies (see below and in the Textbox). Kumar and Woo (2010) found an inverse relationship between initial public debt and subsequent economic growth: according ...
... that high levels of debt are associated with lower growth was not questioned at all. This result is underpinned by several other empirical studies (see below and in the Textbox). Kumar and Woo (2010) found an inverse relationship between initial public debt and subsequent economic growth: according ...
Economic forecasts
... Policy decisions are taken in the space of a few months… – Policy decisions are taken on the basis of preliminary data which are subject to large revisions. – Revisions often appear too late to be taken into account ...
... Policy decisions are taken in the space of a few months… – Policy decisions are taken on the basis of preliminary data which are subject to large revisions. – Revisions often appear too late to be taken into account ...
THE DECLINE OF THE FEDERAL DEBT
... What happens to the money that is now in the Treasury’s hands is crucial to under standing the workings of the debt. In general, the surplus funds from the agencies accu mulating GAS securities are simply put into the general pooi of government funds col lected by the Treasury; primarily through tax ...
... What happens to the money that is now in the Treasury’s hands is crucial to under standing the workings of the debt. In general, the surplus funds from the agencies accu mulating GAS securities are simply put into the general pooi of government funds col lected by the Treasury; primarily through tax ...
Banks` Home sovereign exposures - European Parliament
... Sovereign, in other words the banks’ exposures to the country in which they are headquartered. The EBA 2016 transparency exercise relied on the banks’ supervisory reporting data (FINREP reporting) that is slightly less granular than the data used in previous years but that allows for a clearer separ ...
... Sovereign, in other words the banks’ exposures to the country in which they are headquartered. The EBA 2016 transparency exercise relied on the banks’ supervisory reporting data (FINREP reporting) that is slightly less granular than the data used in previous years but that allows for a clearer separ ...
What next for the Eurozone? Possible scenarios for 2012
... and its independent central bank with flexible exchange rates. ...
... and its independent central bank with flexible exchange rates. ...
File
... be able to purchase the new debt without reducing the funds they invest in the private sector. Because net investment doesn’t decline, there will be no debt burden. As you can see, Ricardian equivalence requires that savings by the private sector increase when the deficit increases. Do savers behave ...
... be able to purchase the new debt without reducing the funds they invest in the private sector. Because net investment doesn’t decline, there will be no debt burden. As you can see, Ricardian equivalence requires that savings by the private sector increase when the deficit increases. Do savers behave ...
Institutions, Deficits, and Wars: The Determinants of British
... fiscal and export data. We also include measures of manpower voted by Parliament to the navy and the land army.9 Table 1A presents the results obtained from univariate regressions of the Consol yield on the likely explanatory variables: Barro‘s measure of military spending; the lagged debt to GDP ra ...
... fiscal and export data. We also include measures of manpower voted by Parliament to the navy and the land army.9 Table 1A presents the results obtained from univariate regressions of the Consol yield on the likely explanatory variables: Barro‘s measure of military spending; the lagged debt to GDP ra ...
Financial Globalization
... Post-freeze securitization could help restructuring By shrinking banks’ balance sheets But asset management/disposal still a major issue ...
... Post-freeze securitization could help restructuring By shrinking banks’ balance sheets But asset management/disposal still a major issue ...
Financial Ratios and Meanings
... Meaning: Measures the degree that working capital should meet daily obligations in relation to business volume Improved by: Improve working capital or reduce unprofitable sales while maintaining working capital Working Capital: Formula: Current Assets - Current Liabilities Meaning: Principal measure ...
... Meaning: Measures the degree that working capital should meet daily obligations in relation to business volume Improved by: Improve working capital or reduce unprofitable sales while maintaining working capital Working Capital: Formula: Current Assets - Current Liabilities Meaning: Principal measure ...
Emerging Market Countries in the Global
... 3S&P, JP Morgan, IMF Indices, IMF Weo, IMF ICM, IMF EWS studies have been excluded due to lack of verifiability of results. The following adjustments have been made to the authors’ checklist: significant credit variables reduced from 10 to 8 as Kaminsky (1999) considers level rather than growth rate ...
... 3S&P, JP Morgan, IMF Indices, IMF Weo, IMF ICM, IMF EWS studies have been excluded due to lack of verifiability of results. The following adjustments have been made to the authors’ checklist: significant credit variables reduced from 10 to 8 as Kaminsky (1999) considers level rather than growth rate ...
The Case for Investing in Municipal Bonds
... bonds, and dedicated tax bonds have gone into payment default in 2012 so far (data through August). This represents 0.8% of all municipal defaults and a mere .004% of state and local debt outstanding. Historically, too, default rates have been extremely low: From 1970 to 2011, only 71 municipal issu ...
... bonds, and dedicated tax bonds have gone into payment default in 2012 so far (data through August). This represents 0.8% of all municipal defaults and a mere .004% of state and local debt outstanding. Historically, too, default rates have been extremely low: From 1970 to 2011, only 71 municipal issu ...
brooks_mosley_F230_1_pres
... Both the outcome of the election and the possibility of policy discontinuity are considered sources of uncertainty (Jensen & Schmith 2005) ...
... Both the outcome of the election and the possibility of policy discontinuity are considered sources of uncertainty (Jensen & Schmith 2005) ...
NBER WORKING PAPER SERIES FISCAL LIMITS AND MONETARY POLICY Eric M. Leeper
... require some minimum level of government expenditures to function, but most societies have adopted social compacts that put a floor on spending that is well above that minimum. Taken together, these considerations imply a maximum level of primary budget surpluses— call it smax . The expected discount ...
... require some minimum level of government expenditures to function, but most societies have adopted social compacts that put a floor on spending that is well above that minimum. Taken together, these considerations imply a maximum level of primary budget surpluses— call it smax . The expected discount ...
CH07 - U of L Class Index
... Suppose the company has a beta of 1.5. The market risk premium is expected to be 9% and the current risk-free rate is 6%. Dividends will grow at 6% per year and last dividend was $2. The stock is currently selling for $15.65. What is our cost of equity? ...
... Suppose the company has a beta of 1.5. The market risk premium is expected to be 9% and the current risk-free rate is 6%. Dividends will grow at 6% per year and last dividend was $2. The stock is currently selling for $15.65. What is our cost of equity? ...
Cross River State Government of Nigeria
... month (a two-year high), mainly due to slower increases in foodstuff prices and other consumables. Although, the inflation rate averaged 8.1% in 2014, it has consistently risen in 2015, underpinned by the sustained depreciation of the Naira and the country’s persistent current account deficits. Shor ...
... month (a two-year high), mainly due to slower increases in foodstuff prices and other consumables. Although, the inflation rate averaged 8.1% in 2014, it has consistently risen in 2015, underpinned by the sustained depreciation of the Naira and the country’s persistent current account deficits. Shor ...
The Chinese Government Debt – What do we know
... an individual country’s resilience against exogenous shocks - such as the subprime crisis and the European debt crisis in the past few years - tends to be stronger when a country has a solid public debt and financial position. This conclusion is well analyzed in the EEAG report from February 2012 by ...
... an individual country’s resilience against exogenous shocks - such as the subprime crisis and the European debt crisis in the past few years - tends to be stronger when a country has a solid public debt and financial position. This conclusion is well analyzed in the EEAG report from February 2012 by ...
America Is The Next Greece! Maybe…Maybe Not!
... believe that America is Greece. Both countries are bleeding red ink at about the same rate relative to their GDP. Greece is bleeding at a 10.5% rate compared to 9.3% for the US (FactCheck.org, 2011). The US is now where Greece was a decade ago; if it does not mend its ways, it will certainly start l ...
... believe that America is Greece. Both countries are bleeding red ink at about the same rate relative to their GDP. Greece is bleeding at a 10.5% rate compared to 9.3% for the US (FactCheck.org, 2011). The US is now where Greece was a decade ago; if it does not mend its ways, it will certainly start l ...
Net Income
... The profits, whatever their level, always represent an absolute value, not giving much information if we don’t compare them with the investment needed or undertook to obtain them. A profit of € 500,000, for example, does not indicate much about the performance of the company, whether it was high or ...
... The profits, whatever their level, always represent an absolute value, not giving much information if we don’t compare them with the investment needed or undertook to obtain them. A profit of € 500,000, for example, does not indicate much about the performance of the company, whether it was high or ...
T14.1 Chapter Outline
... F19 Quick Quiz 1. What is the relationship between cost of capital and firm value? Cet. par., the lower the cost of capital, the higher the value of the firm. 2. When we use the dividend growth model to estimate the firm’s cost of equity, we make a key assumption about future dividends of the firm. ...
... F19 Quick Quiz 1. What is the relationship between cost of capital and firm value? Cet. par., the lower the cost of capital, the higher the value of the firm. 2. When we use the dividend growth model to estimate the firm’s cost of equity, we make a key assumption about future dividends of the firm. ...
The Economic Consequences Of Rising U.S. Government Debt
... 2. Government as Financial Intermediary A government that allows its citizens to defer payments for current public goods and services is in effect providing credit. If this credit to tax payers is financed by public debt, government is acting as financial intermediary. This role is well recognized i ...
... 2. Government as Financial Intermediary A government that allows its citizens to defer payments for current public goods and services is in effect providing credit. If this credit to tax payers is financed by public debt, government is acting as financial intermediary. This role is well recognized i ...
Public debt and growth: evidence from Central, Eastern and
... 1800. The authors find that in 23 of these 26 episodes, countries experienced lower growth than the average of other years. On the contrary, Baum et al. (2013) focus on 12 euro area countries for the period 1990-2010 and their empirical results suggest that the short run impact of debt on GDP growth ...
... 1800. The authors find that in 23 of these 26 episodes, countries experienced lower growth than the average of other years. On the contrary, Baum et al. (2013) focus on 12 euro area countries for the period 1990-2010 and their empirical results suggest that the short run impact of debt on GDP growth ...
The effects of government debt market financialization
... must be forecasted, but also other factors such as GDP and exports. The condition of liquidity set out by the IMF refers to the government’s capacity to rollover its maturing debt obligations in an ‘orderly manner’ (2013: 147), i.e., to repay its debt regularly and to design appropriate borrowing st ...
... must be forecasted, but also other factors such as GDP and exports. The condition of liquidity set out by the IMF refers to the government’s capacity to rollover its maturing debt obligations in an ‘orderly manner’ (2013: 147), i.e., to repay its debt regularly and to design appropriate borrowing st ...
data1 fasb eitf abstracts 9522
... Borrowings outstanding under certain revolving credit agreements are considered longterm debt because the borrowings are due at the end of a specified period (for example, 3 years) rather than when short-term notes roll over (for example, every 90 days). Borrowings may be collateralized, but the onl ...
... Borrowings outstanding under certain revolving credit agreements are considered longterm debt because the borrowings are due at the end of a specified period (for example, 3 years) rather than when short-term notes roll over (for example, every 90 days). Borrowings may be collateralized, but the onl ...
The euro zone: Falling into a liquidity trap?
... (purchases of short-term government debt by the central bank) have lost traction on the real economy, because nominal short-term interest rates are zero or close to zero. In that situation economic agents become virtually indifferent between holding money and holding bonds13. So their demand for liq ...
... (purchases of short-term government debt by the central bank) have lost traction on the real economy, because nominal short-term interest rates are zero or close to zero. In that situation economic agents become virtually indifferent between holding money and holding bonds13. So their demand for liq ...
FINANCING DEVELOPMENT: FISCAL REFORM, DEBT
... expenditure rationalization strategy is needed. It will be governed by five priorities: ➜ Ceiling of the overall public expenditure ➜ Reduce share of current expenditures ➜ Rationalize investment spending ➜ Focus on social and regional development programs ➜ Improving the administrative efficiency i ...
... expenditure rationalization strategy is needed. It will be governed by five priorities: ➜ Ceiling of the overall public expenditure ➜ Reduce share of current expenditures ➜ Rationalize investment spending ➜ Focus on social and regional development programs ➜ Improving the administrative efficiency i ...
Government debt
Government debt (also known as public debt, national debt and sovereign debt) is the debt owed by a central government. (In federal states, ""government debt"" may also refer to the debt of a state or provincial, municipal or local government.) By contrast, the annual ""government deficit"" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year.Government debt is one method of financing government operations, but it is not the only method. Governments can also create money to monetize their debts, thereby removing the need to pay interest. But this practice simply reduces government interest costs rather than truly canceling government debt, and can result in hyperinflation if used unsparingly.Governments usually borrow by issuing securities, government bonds and bills. Less creditworthy countries sometimes borrow directly from a supranational organization (e.g. the World Bank) or international financial institutions.As the government draws its income from much of the population, government debt is an indirect debt of the taxpayers. Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders). Another common division of government debt is by duration until repayment is due. Short term debt is generally considered to be for one year or less, long term is for more than ten years. Medium term debt falls between these two boundaries. A broader definition of government debt may consider all government liabilities, including future pension payments and payments for goods and services the government has contracted but not yet paid.