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Reuters Asks: Do Deficits Matter?

Friday, May 03, 2013 - 01:48

May 3 - Austerity’s mounting critics say it’s led to sluggish growth. Reuters asks if budget deficits are an acceptable way for governments try and kick start their economies

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Excessive budget deficits and debt -- -- act as a drag on growth. However. To successfully reduced budget deficit you need ultra easy mark for post here next -- do. I'm -- the lesson that Europeans. Deficits to accept what we kind. Get confused between what is justice charity and want to is very necessary structural reform. They -- so when that day. Rising in an extra -- inexorably. Towards. A unsustainable. Structural position. They're level all of them depends on the circumstances. Us us. If it's because of something that is Tim prince seemed to -- -- improved and I don't think that they would include drew grosses. Many suspect. Did they Massa yes but of course -- days. Because eventually. You results and if you running very high deficits what kind of results we've seen in certain areas. I silicon investor confidence in government debt markets. If you're in a cycle where people are very optimistic and believing in central bank's power. On the matter less if you're in a period where there's a lot of uncertainty. You know they they they -- to matter more so right now I guess the answer is they don't matter as much as they used to. Yes it depends on and -- those of theories around that around when you should run a deficit when you shouldn't. I mean for instance and some of this and blooming cycle booming Asian economies and we consensus that for instance Indonesia is still running a deficit at this stage in the cycle thing with Australia actually. I'm about you know keynesian economists and -- say that today units of the most of troubled developed economies. You need the government be running a deficit to try and replay the economy.

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Reuters Asks: Do Deficits Matter?

Friday, May 03, 2013 - 01:48