PPT-Fiscal Policy, Deficits, and Debt

30 McGrawHillIrwin Copyright 2012 by The McGrawHill Companies Inc All rights reserved Fiscal Policy Deliberate changes in Government spending Taxes Designed to Achieve fullemployment. Presentation to Wim Drees Foundation for Public Finance. Conrad Smewing. Deputy Director, Fiscal Policy and Statistics. April 2011. UNCLASSIFIED. Overview of presentation. Origin of the UK fiscal deficit. Why America Needs Comprehensive . Fiscal Reforms Now. Deficit Projections. Note: Estimates based on CRFB Realistic Baseline.. (Percent of GDP). 1992-2012 . Average Deficit:. . 2.9%. 2012-2022 Average . Austerity vs. Stimulus. Jeffrey Frankel. Harpel Professor of Capital Formation and Growth. Senior Executive Fellows, April 22, 2014. Definitions. Fiscal stimulus . or expansion:. Raise government spending or cut taxes. Philip Arestis and Malcolm Sawyer. University of Cambridge and University of Leeds. Introduction. The well-known . relationship. G- . T = S - I - NX . = S – I + FA. G: government expenditure; T tax revenue; S private savings; I private investment; NX net . 13. McGraw-Hill/Irwin. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.. Fiscal. . Policy. The use of the taxing and spending powers of government to regulate aggregate expenditure, and thereby to stabilize the economy. Tokyo Fiscal Forum. Tokyo, 10-11 June 2015. José Luis Escrivá. Fiscal local government overview. 2. Three highly decentralized countries with high level of local government debt. Tokyo Fiscal Forum, 10-11 June 2015. Debts and Deficits. Last time:. Conceptual issues of debts and deficits. Deficits and slower growth of potential Y in the closed . economy. Deficits and foreign borrowing and lower Y in the open economy. What is Fiscal Policy?. What is Fiscal Policy Used For?. What is Fiscal Policy?. Changes in government spending and tax collections to achieve: . full employment, . control inflation, and . encourage economic growth.. (And then Went AWOL). Stephanie Kelton, Ph.D. . Economists for Peace and Security, Bernard L. Swartz Symposium. Hyatt Regency Capitol Hill, Washington DC. November 17, 2014. Who (or What) Saved Capitalism?. From Deficits to Debt. Because of deficit spending, the national debt has increased dramatically.. . Typically, . deficit spending . is a result of the government forced to spend more than it collects because of unexpected developments causing a drop in revenues or a rise in expenditures.. and the . Historical . Development of Macroeconomics. The Historical Evolution . of Macroeconomics. The Great Depression . and . Macroeconomics. The Great Depression exerted a huge impact . on macroeconomics. Side Effects (Offsets) to Fiscal Policy. Fiscal Policy not a perfect science/often trial and error with expansionary and contractionary fiscal policy. Expansionary Policy. - greater AD/less unemployment but could lead to inflation. Economic . Fluctuations:. The Past 100 Years. Economic . Fluctuations:. the . Historical Record. Historically, the United States has experienced substantial swings in real output.. Before the Second World War, year-to-year changes in real GDP of 5% to 10% were experienced on several occasions. . which was laid before the Houses of Parliament . on February 10, 2022. . . . Auditor General’s Comments. Auditor General’s Responsibilities. Section 48B (6) of the FAA Act requires the Auditor General to...