Gao Peiyong* * Gao Peiyong, Professor, Renmin University, Beijing, China.

Size: px
Start display at page:

Download "Gao Peiyong* * Gao Peiyong, Professor, Renmin University, Beijing, China. E-mail: gaopy@263.net."

Transcription

1 The Scale of Public Debt in China Gao Peiyong* In measuring the present scale of China s public debt, cess has public debt in China experienced? Thirdly, facing the current situation of public debt in china, what two different types of indexes, stock index and flow index, should be employed separately. The scale of public debt in China, developing from zero in 1979 to what it countermeasures should the government take? is today in a short period of a little over 20 years, results II. Two Different Measuring Indexes from the compound effects of factors such as institutional reform, tax default, non-standardized government Although numerous indexes are used to measure the scale revenue, borrowing new debts to repay old ones, and an of public debt in China, they can be summed up in two expansionary fiscal policy. Under the background of categories: the stock index and the flow index. The stock China s current situation, to prevent the latent risk of public index concerns the accumulated scale of public debt, such debt, we must focus on diminishing the comparatively high as the debt burden rate, which represents the proportion debt dependence degree with mutual effects of multiple of accumulated debts to GDP of the year, and reflects proportional relations between total accumulated public debt factors. and the gross economic scale of the year. The flow index I. Introduction focuses on the issuance scale of public debt, such as the debt dependence degree, which is the proportion of total issuance amount of public debt to the government fiscal There are two contrary judgments for the present scale of public debt in China within academic circles and expenditures of the year, reflecting the level of dependence government departments. One is that the scale is not of government fiscal expenditures on debt revenues. large and there is still expanding space within the acknowledged safety line. The other is that the scale is judging the scale of public debt in China may result in The application of the two different indexes in too large and there are already certain hidden risks and different conclusions. so we should take some measures to control it. Let s first look at the rate of debt burden. By the end The author believes that the scale of public debt in of 2001, the amount of accumulated debts to be repaid China is a special issue that reflects general law as well had hit billion yuan, 1 approximately 19.1 percent as exposes the specific situation of China. To study it, of the GDP of the year (National Bureau of Statistics, we should follow the path of integrating general law 2001; Xiang, 2002). Compared with the safety line of with the situation of China carefully under a background of institutional evolution. is very low, so many people don t think the scale of public 60 percent prescribed by the Maastricht Treaty, this figure Based on the understanding above, this paper discusses issues of three aspects: Firstly, is the scale of considerable expansion space. debt of China is large and believe there is still public debt in China large or not? Secondly, during the As for the index of debt dependence degree, China 23 years from 1979 to 2001, what developmental pro- issued billion yuan 2 of public debts in 2001, which * Gao Peiyong, Professor, Renmin University, Beijing, China. 1 This figure is 270 billion yuan more than the billion yuan announced by authorities. It was due to the public debt of 270 billion yuan issued specially to state owned commercial banks to make up their capital in 1998, which was only an adjustment of accounts on the surface, but still a part of public debts in nature and should be counted in public debt. 2 In which, billion yuan was the debt revenue of central public finance, and 40 billion yuan was issued by central public finance on behalf of local public finance. 3

2 covered 23.9 percent (=500.4 / ) of national fiscal expenditures (including both central public finance and local public finance expenditures) and 64.4 percent (=500.4/ ) of central fiscal expenditures (central fiscal expenditures only) of the year (Xiang, 2002). Whatever figure we use, neither can be said to be low, compared with those of European and American countries, and to some extent they are on the high side. Because of this, many people worry about the rapid expansion of the issuing scale of public debt. The accumulated scale of public debt is not large, but the issuance scale is relatively high. The reason for the co-existence of the two facts lies in the short history of public debts issuance in China, which is about 23 years if we take the starting year as The large accumulated scale of public debts in Western countries, including Europe and the US, results from several hundred years of accumulation. But that is the very problem: If the issuing scale of public debts in China expands similarly, it won t be long before the accumulated scale is out of control (Gao, 1998). Furthermore, the ratio of the issuing amount of public debt to national public fiscal expenditure, and that to central public fiscal expenditures, are computed separately based on two different indexes of debt dependence degree of national public finance and debt dependence degree of central public finance. The public debt of China is issued as a way of collecting revenue, which means that the revenue is listed in the central government budget and is allocated by the central government. The local government doesn t have the right to issue bonds; there is no debt revenue in local fiscal revenue, so local fiscal expenditure is not related to debt revenue. That is, the issuing amount of public debt as a numerator of debt dependence degree calculation formula is wholly the revenue of the central government (although part of it is issued in the name of local government). So we can see, what can really reflect reality is the latter the debt dependence degree of central public finance. Therefore, if we say there is a hidden risk in the scale of public debt in China, the risk comes from a too large issuance scale (not accumulated scale)of public debt, which is centrally indicated as the high debt dependence degree of central public finance (not national public finance). III. Public Debt in China since Reform and Opening up Previously in China there was a period of having no internal public debt and no external debt either. 3 When the Chinese government re-employed public debt in 1979, there was no accumulated debt. Then comes the question: how did the public debt of China, which started from nothing, evolve to its present scale in a short period of 23 years? What are the major factors we can take as historic clues? 1. Institutional reform In China, the re-issuing of public debt took place almost at the same time as economic system reform. One major feature of economic system reform in China is that each progress has been accomplished at the price of tax reduction and profit relinquishment of public finance (especially that of central public finance). The deficit arising from tax reduction and profit relinquishment was financed at first by both overdrawing (borrowing) from the central bank and issuing new debts. To restrain inflation, overdrawing (borrowing) from the central bank was prohibited completely from 1994, and the fiscal deficit was wholly made up by issuing public debts. Since the means of financing deficits was transferred from double-track to singlelane, the scale of public debt proliferated from several billion yuan in the 1980s and early 1990s to several hundred billion ( billion) yuan in The default of tax The national income distribution system under the traditional planned economic system was built on the unified purchases and sales of agriculture and non-staple products, 3 From 1959 to 1978, the Chinese government did not issue any public debts. 4

3 as well as the unified administration of urban worker s salaries. The fiscal revenue structure at that time was a coexistence of both taxes and profits, with profits being the main part. Moreover, profits submitted by state owned economic entities covered a major portion. 4 Since reform and opening up, the unified purchases and sales of agriculture and non-staple products, along with the unified administration of urban worker s salaries, broke down with the development of a market economy, and old fiscal revenue channels disappeared. However, fiscal revenue from standardized taxes had been confronting challenges of the inertial impact of a long period of an absence of legal taxes. Because economic bodies can t adapt themselves to the new situation, tax-evasion subconsciously and consciously occurs simultaneously. As strict administration and severe penalties were still out of phase, and the social environment of governing taxation by laws not yet established, tax evasion spread like a virus, resulting in a failure to collect taxes due and a great loss of national taxes. After tax system reform in 1994, such conflicts have lessened, but the problem is still far from being resolved. Facing the rigidity of fiscal expenditures, default of tax that is supposed to be the main player in a fiscal revenue system can only lead to an increasing dependence on public debts. Thus the offside of public debts arises. 3. The impact of non-standardized government revenue Over the two decades since reform and opening up, with the compound effects of many factors of institutional transformation, Chinese governments at all levels have formed a coexistent structure of three arrangements budgetary revenue, off-budget revenue and off-system revenue, which can also be said to be the coexistence of standardized and non-standardized government revenue. The sharp decline in the proportion of standardized budget revenue to GDP, and the quick proliferation of nonstandardized government revenue off budget and offsystem revenue took place simultaneously. 5 What we need to see is that the growth of off-budget and off-system revenues is under the precondition of crowding out inner-budget revenues to a large extent. Without a shift of budgetary revenue to off-budget and off-system revenue, non-standardized government revenue could not have expanded to the current scale at such a great speed. The impact of non-standardized government revenue on budgetary revenue has directly caused the drop in the proportion of budgetary revenue to GDP. Furthermore, since the decline of the proportion of government expenditures to GDP does not go hand in hand with the decline of budgetary revenues, the gap between the two proportions can only be made up by issuing more public debts. 4. Borrowing new debts to repay old ones The capital and interest of public debts are bound to be eventually repaid. While fiscal troubles, especially those at the central level, are not always resolved, the pressure of repayment has forced the Chinese government to borrow anew to repay matured public debts. Not only the repayment of the principal, but also payment of the interest of public debts depends on issuing new obligations. Since 1994, the expenditure of such repayments have been listed out of budget, side by side with the current budget and the constructive budget, generating a so-called third budget a debt budget, which is not indicated in the budgetary expenditure. In 1997, for example, billion yuan (77.39 percent) out of the total public debt revenue of billion yuan was used to deal with matured capital and interest of public debt that year. This figure was not included in the national budgetary expenditure of billion yuan. Although the annual repayment peak of hundreds of billion yuan can get through this way, it was at the cost of the size of public debts accumulating. Since 2000, the repayment of capital and interest of public debts has been separated interest expenditure 4 Take the gross revenue of national public finance in 1978 for example; there was 35.8 percent derived from taxes paid by state-owned entities, and 51 percent coming from profits handed in by state owned entities. The total amount of the two parts reached 86.5 percent of the gross revenue of national public finance. 5 Based on the typical investigation by Chen Xiaoping in 2000, if we add the three levels of government revenues together, the ratio of public finance revenue to GDP is percent. In the same year, the ratio announced by the authority was 15 percent. See Chen (2001). 5

4 has been included in the budget as an expenditure item of the current budget. The repayment of the principal is still financed by issuing new debts. This arrangement has avoided the hidden worry of the scale of public debt, but the long-term inertial effect and the thus-increased fiscal deficit following the entry of interest payments to budget still call for more public debts to a sizable extent. 5. The expansion of fiscal expenditure The relative decline of budgetary revenue, especially the drop in current budgetary revenue, has not brought a corresponding drop in the fiscal expenditure of Chinese governments. On the contrary, in the tide of reform and opening up, governments at different levels have an increasing need of spending on many aspects. The employment of public debt has made it possible for the government to break the constraints of current fiscal revenue over fiscal expenditure. Furthermore, the public debt administrative system itself is still far from perfect and lacks effective control over the scale of public debts, so the scale of fiscal expenditure has been kept rising. From 1979 to 2001, national fiscal expenditures (including debt payments) increased from billion yuan to billion yuan (= ) 6. It increased over 16 times during 23 years, which is much more than the rate of increase of fiscal revenue, even that of the GDP of the same period. So we may see a chain reaction like this: expansion of fiscal expenditure increase of fiscal deficit enlargement of the scale of public debt further inflation of fiscal expenditure further enlargement of the scale of public debt. 6. Exerting expansionary fiscal policy In 1998, with the widening of the Asian financial crisis and the slowing down of international economy and trade, the Chinese government decided to carry out a so-called pro-active fiscal policy to stimulate demand. The main content of a pro-active fiscal policy is to stimulate domestic demand and maintain economic growth by issuing more public debts and invest more in government infrastructure construction, the technological improvement of state-owed enterprises and other aspects. From 1998 to 2002, China issued 100 billion yuan, 110 billion yuan, 150 billion yuan, 150 billion yuan and 150 billion yuan of long-term public debts respectively. Total issued public debts with the nature of proactive fiscal policy amounted to 660 billion yuan in five years(xiang, 2002). IV. The Way out: Minimizing Debt Dependence Degree As we can see, continuous debt issuance over the past 20 years has brought a series of positive effects to the development of the Chinese economy and society. However, it has also confronted the public finance of China with certain risks by an annual increase of the issuance scale of public debts and the debt dependence degree of central public finance. The continuity and stability of economic policies and the implementation of an active fiscal policy to the request of the current economic situation mean that the issuance size of public debts will inflate even further. Under the current background, the only correct choice is to base it on the present with an eye to the future. When we go all out to secure the stable growth of macro-economy, we should aim to take minimizing the relatively high degree of debt dependence as an important policy to pursue. 1. Perfecting the tax system further and collecting as much taxes due as possible Basically speaking, under the restraint of the established scale of fiscal expenditure, the current fiscal revenue represented by tax income has a flux-and-reflux substitution relationship with public debts. Since the offside of public debt results from the default of tax income, putting tax income as the main force of fiscal revenue system in place is certainly a key step towards reducing the degree of debt dependence. We should hold a belief that any increase in national taxes will result in a drop in public debts. A great tax dependence degree will accordingly result in a low debt dependence degree. The government should aim at collecting as much taxes due 6 For more detailed information, see National Bureau of Statistics (2001) and Xiang (2002). 6

5 as possible, consummate the tax system, strengthen the tax collecting administration and close all tax loss loopholes to minimize the loss of national tax revenue. 2. Accelerating the process of turning fees into taxes and normalizing government revenue mechanism Despite having different forms, any government revenue is virtually fiscal funds. Turning fees into taxes means transferring all non-standardized government revenue in every department and region to standardized government revenue under the unified administration of fiscal departments, and expanding total standardized fiscal revenue. On this basis, it is obviously of great fundamental significance to normalizing the mechanism of government revenue as a whole for diminishing the degree of debt dependence. 3. Controlling the accumulated amount of public debt at year-end according to international practice China currently controls the scale of public debt by planning and determining the amount of public debt issuance at the beginning of a year, and then submitting the plan to the People s Congress for approval. This is somewhat different from the international practice of controlling accumulated amounts at the end of a year. Comparatively, in view of the characteristics of public debts as a form of fiscal revenue, the international practice may be more reasonable. If we determine the planned amount of public debt at the beginning of a year and try to issue public debts as planned, the debt revenue will be a fixed amount. Such a fixed amount may be out of phase with the actual situation of fiscal operation of the year, thus public debts may lose flexibility and fall into the same category as current fiscal revenue that is relatively more fixed. Furthermore, debt revenue, without its flexibility, due to partial or overall idleness, has to assume compensations. We have had too many lessons in this aspect. The public debt issued in 1996 was a typical instance. On one hand, changes in foreign exchange rates reduced the expenditures on the repayment of capital and interest of foreign and domestic public debts, so the central budget deficit experienced a relief. On the other hand, since China issued debts as planned and determined at the beginning of the year and failed to conduct proper adjustments in line with actual fiscal operations, public debts that should have been mastered flexibly were rigidified. As a result, the debt balance of 1996 hit 4.31 billion yuan, which had to be transferred to the next year. Therefore, it would be much better if we followed international practice. The specific amount of public debts should not be determined at the beginning of a year. The People s Congress should have control over the accumulated amount of public debts at year-end by way of stipulating a limit to the accumulated amount of public debts. The Ministry of Finance should make decisions regarding debt amounts, varieties and issuing dates according to the actual fiscal conditions of the budgetary year. In fact, this will strengthen rather than undermine the control of the People s Congress over the scale of public debts. 4. Making every effort to cut down fiscal expenditure It is always difficult, but still feasible, to cut down fiscal expenditure. If we could reconsider and define the functions of public finance in view of market economic system and reconsider the distribution of social funds in view of promoting the efficiency of fund utilization, the existing functions of public finance will surely be narrowed. If we could aim at diminishing the degree of debt dependence and bettering fiscal conditions at the price of some partial and individual benefits, we will definitely achieve the goal of substantially cutting down on fiscal expenditures. References Chen, Xiaoping, Research on the Reasonable Scale of Government Public Finance in China. Information Materials of Finance and Economy in China, No. 22. Gao, Peiyong, On the scale of public debt in China. Public Finance Research, No. 4. National Bureau of Statistics, Statistical Almanac of China (2001), the Chinese Statistics Press. Xiang, Huaicheng, Reports on the Implementation of Central and Local Budget in Public Finance of China, No. 8. 7

An Introduction to CNAO's Audits of Government Debts

An Introduction to CNAO's Audits of Government Debts An Introduction to CNAO's Audits of Government Debts Government debts are a common phenomenon in modern market economies. Moderate indebtedness plays a positive role in boosting economic and social development,

More information

The Positive Role of Audit in Public Debt Management in China

The Positive Role of Audit in Public Debt Management in China The Positive Role of Audit in Public Debt Management in China (for the 1 st ASOSAI-EUROSAI Joint Conference) September 2011, Turkey By Dr. DONG Dasheng, the first Deputy Auditor Introduction Since 2008,

More information

Monetary policy, fiscal policy and public debt management

Monetary policy, fiscal policy and public debt management Monetary policy, fiscal policy and public debt management People s Bank of China Abstract This paper touches on the interaction between monetary policy, fiscal policy and public debt management. The first

More information

In recent years, fiscal policy in China has been prudent. Fiscal deficits

In recent years, fiscal policy in China has been prudent. Fiscal deficits 1 Fiscal Policy in China STEVEN DUNAWAY AND ANNALISA FEDELINO* In recent years, fiscal policy in China has been prudent. Fiscal deficits have been lower than budgeted, because revenue overperformances

More information

Supplemental Unit 5: Fiscal Policy and Budget Deficits

Supplemental Unit 5: Fiscal Policy and Budget Deficits 1 Supplemental Unit 5: Fiscal Policy and Budget Deficits Fiscal and monetary policies are the two major tools available to policy makers to alter total demand, output, and employment. This feature will

More information

Study on the financing methods of China's listed companies

Study on the financing methods of China's listed companies 2011 3rd International Conference on Information and Financial Engineering IPEDR vol.12 (2011) (2011) IACSIT Press, Singapore Study on the financing methods of China's listed companies Xiya Luo 1 School

More information

MACROECONOMIC AND FISCAL ASSESSMENT

MACROECONOMIC AND FISCAL ASSESSMENT Public Sector Financial Management Program (RRP SAM 46384) A. BACKGROUND MACROECONOMIC AND FISCAL ASSESSMENT 1. Samoa is composed of about 10 islands, 4 inhabited, and several uninhabited islets situated

More information

Sub-national Debt Management

Sub-national Debt Management Sub-national Debt Management Indian Experience Alok Chandra Director, Ministry of Finance, India 27 June 2008 Structure Part A: Institutional Approaches to regulations of Sub-national Borrowings Part B:

More information

Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1)

Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1) Monetary and Financial Aspects of Issuing Public Debt Instruments in Kuwait (1) I would like to thank the Faculty of Commerce for arranging this meeting, which I hope will lead to the clarification of

More information

Country Report. To the. International Councils of Securities Associations

Country Report. To the. International Councils of Securities Associations Country Report To the International Councils of Securities Associations The 13 th Annual General Meeting In Taipei, Taiwan April 17 19, 2000 Presented by The Chinese Securities Association 1. Economic

More information

7. Student Loan Reform in China: Problems and challenges

7. Student Loan Reform in China: Problems and challenges 7. Student Loan Reform in China: Problems and challenges Wei Jianguo and Wang Rong China Institute for Educational Finance Research, Peking University Development of Student Loans in China The development

More information

The Case for a Tax Cut

The Case for a Tax Cut The Case for a Tax Cut Alan C. Stockman University of Rochester, and NBER Shadow Open Market Committee April 29-30, 2001 1. Tax Increases Have Created the Surplus Any discussion of tax policy should begin

More information

Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics.

Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics. 1 Module C: Fiscal Policy and Budget Deficits Note: This feature provides supplementary analysis for the material in Part 3 of Common Sense Economics. Fiscal and monetary policies are the two major tools

More information

The Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen,

The Macroeconomic Situation and Monetary Policy in Russia. Ladies and Gentlemen, The Money and Banking Conference Monetary Policy under Uncertainty Dr. Sergey Ignatiev Chairman of the Bank of Russia (The 4 th of June 2007, Central Bank of Argentina, Buenos Aires) The Macroeconomic

More information

China's debt - latest assessment SUMMARY

China's debt - latest assessment SUMMARY China's debt - latest assessment SUMMARY China s debt-to-gdp ratio continues to increase despite the slowing economy. A convincing case can be made that the situation is manageable: the rate of credit

More information

Economics 152 Solution to Sample Midterm 2

Economics 152 Solution to Sample Midterm 2 Economics 152 Solution to Sample Midterm 2 N. Das PART 1 (84 POINTS): Answer the following 28 multiple choice questions on the scan sheet. Each question is worth 3 points. 1. If Congress passes legislation

More information

5. Budget Financing and Debt Management

5. Budget Financing and Debt Management 5. Budget Financing and Debt Management 5.1 To accomplish the objectives of the NSAPR, Bangladesh has been pursuing its debt management activities with various short, medium and long term reform measures.

More information

Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision

Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision Structural Reform and Medium-Term Economic and Fiscal Perspectives - FY2004 Revision January 21, 2005 Cabinet Decision 1. About FY2004 Revision 1 Despite recent slack movement observed in certain areas,

More information

Trends in Foreign Direct Investment Inflows

Trends in Foreign Direct Investment Inflows Trends in Foreign Direct Investment Inflows This article briefly examines recent trends in foreign direct investment in Australia, both in the context of the longer-term perspective and relative to the

More information

COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012

COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012 2.6.2010 Official Journal of the European Union C 143/1 I (Resolutions, recommendations and opinions) OPINIONS COUNCIL COUNCIL OPINION on the updated stability programme of Belgium, 2009-2012 (2010/C 143/01)

More information

GOVERNMENT OF SAINT LUCIA DEBT MANAGEMENT STRATEGY

GOVERNMENT OF SAINT LUCIA DEBT MANAGEMENT STRATEGY Page 1 of 5 Introduction GOVERNMENT OF SAINT LUCIA DEBT MANAGEMENT STRATEGY Debt management is the process of establishing and executing a strategy for managing the government s debt in order to raise

More information

The EMU and the debt crisis

The EMU and the debt crisis The EMU and the debt crisis MONETARY POLICY REPORT FEBRUARY 212 43 The debt crisis in Europe is not only of concern to the individual debt-ridden countries; it has also developed into a crisis for the

More information

ENCOURAGING A DYNAMIC LIFE INSURANCE INDUSTRY: ECONOMIC BENEFITS AND POLICY ISSUES

ENCOURAGING A DYNAMIC LIFE INSURANCE INDUSTRY: ECONOMIC BENEFITS AND POLICY ISSUES ENCOURAGING A DYNAMIC LIFE INSURANCE INDUSTRY: ECONOMIC BENEFITS AND POLICY ISSUES by Gerry Dickinson Professor and Director, Centre for Insurance & Investment Studies, City University Business School,

More information

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University

More information

Study on Driving Force of Economic Growth in Beijing and Outlook on Prospect of Economic Growth during 11th Five-year Plan Period

Study on Driving Force of Economic Growth in Beijing and Outlook on Prospect of Economic Growth during 11th Five-year Plan Period Study on Driving Force of Economic Growth in Beijing and Outlook on Prospect of Economic Growth during 11th Five-year Plan Period Research Group Beijing Municipal Bureau of Statistics,China August 31,2006

More information

Why a Floating Exchange Rate Regime Makes Sense for Canada

Why a Floating Exchange Rate Regime Makes Sense for Canada Remarks by Gordon Thiessen Governor of the Bank of Canada to the Chambre de commerce du Montréal métropolitain Montreal, Quebec 4 December 2000 Why a Floating Exchange Rate Regime Makes Sense for Canada

More information

. In this case the leakage effect of tax increases is mitigated because some of the reduction in disposable income would have otherwise been saved.

. In this case the leakage effect of tax increases is mitigated because some of the reduction in disposable income would have otherwise been saved. Chapter 4 Review Questions. Explain how an increase in government spending and an equal increase in lump sum taxes can generate an increase in equilibrium output. Under what conditions will a balanced

More information

Estonia and the European Debt Crisis Juhan Parts

Estonia and the European Debt Crisis Juhan Parts Estonia and the European Debt Crisis Juhan Parts Estonia has had a quick recovery from the recent recession and its economy is in better shape than before the crisis. It is now much leaner and significantly

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Suvey of Macroeconomics, MBA 641 Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Modern macroeconomics emerged from

More information

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives

More information

GHANA S IMF PROGRAM - THE RISK OF FISCAL CONSOLIDATION WITHOUT STRONG FISCAL POLICY RULES. Commentary

GHANA S IMF PROGRAM - THE RISK OF FISCAL CONSOLIDATION WITHOUT STRONG FISCAL POLICY RULES. Commentary GHANA S IMF PROGRAM - THE RISK OF FISCAL CONSOLIDATION WITHOUT STRONG FISCAL POLICY RULES Introduction Commentary Mohammed Amin Adam, PhD Africa Centre for Energy Policy Following macroeconomic challenges

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

Financing Urbanization

Financing Urbanization Commission des finances locales pour le développement Committee on Local Finance for Development Comisión de Financiación Local para el Desarrollo 1. INTRODUCTION Think Piece on Financing Urbanization

More information

chapter: Solution Fiscal Policy

chapter: Solution Fiscal Policy Fiscal Policy chapter: 28 13 ECONOMICS MACROECONOMICS 1. The accompanying diagram shows the current macroeconomic situation for the economy of Albernia. You have been hired as an economic consultant to

More information

Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013

Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013 MAY 2012 Economic Effects of Reducing the Fiscal Restraint That Is Scheduled to Occur in 2013 If the fiscal policies currently in place are continued in coming years, the revenues collected by the federal

More information

Forecasting Chinese Economy for the Years 2013-2014

Forecasting Chinese Economy for the Years 2013-2014 Forecasting Chinese Economy for the Years 2013-2014 Xuesong Li Professor of Economics Deputy Director of Institute of Quantitative & Technical Economics Chinese Academy of Social Sciences Email: xsli@cass.org.cn

More information

11/6/2013. Chapter 16: Government Debt. The U.S. experience in recent years. The troubling long-term fiscal outlook

11/6/2013. Chapter 16: Government Debt. The U.S. experience in recent years. The troubling long-term fiscal outlook Chapter 1: Government Debt Indebtedness of the world s governments Country Gov Debt (% of GDP) Country Gov Debt (% of GDP) Japan 17 U.K. 9 Italy 11 Netherlands Greece 11 Norway Belgium 9 Sweden U.S.A.

More information

Adjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today.

Adjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today. Remarks by David Dodge Governor of the Bank of Canada to the Board of Trade of Metropolitan Montreal Montréal, Quebec 11 February 2004 Adjusting to a Changing Economic World Good afternoon, ladies and

More information

Accounting in China. I. Legal Framework

Accounting in China. I. Legal Framework With the founding of the PRC in 1949, all resources of production in the country came under State ownership, and basically the only form of economic entity was the state-owned enterprise (SOE). The accounting

More information

STATEMENT BY STEPHEN S. GARDNER, VICE CHAIRMAN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BEFORE THE

STATEMENT BY STEPHEN S. GARDNER, VICE CHAIRMAN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BEFORE THE FOR RELEASE ON DELIVERY STATEMENT BY STEPHEN S. GARDNER, VICE CHAIRMAN BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BEFORE THE SUBCOMMITTEE ON TAXATION AND DEBT MANAGEMENT OF THE COMMITTEE ON FINANCE

More information

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY

COMMISSION OPINION. of XXX. on the Draft Budgetary Plan of ITALY EUROPEAN COMMISSION Brussels, XXX [ ](2013) XXX draft COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY EN EN COMMISSION OPINION of XXX on the Draft Budgetary Plan of ITALY GENERAL CONSIDERATIONS

More information

Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets

Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets Understanding the Risk of China s Local Government Debts and Its Linkage with Property Markets Yongheng Deng National University of Singapore Paper presented at the International Symposium on Housing and

More information

Re-Thinking Sovereign Debt Summit

Re-Thinking Sovereign Debt Summit The Only Win-Win Solution for Europe Requires a Fresh Start on Greece State-Building and a Fresh Start on Greece Correctly Calculating Debt Relief from Prior Restructurings -- Japonica Partners Internal

More information

The Economists Voice

The Economists Voice The Economists Voice Volume 2, Issue 1 2005 Article 8 A Special Issue on Social Security Saving Social Security: The Diamond-Orszag Plan Peter A. Diamond Peter R. Orszag Summary Social Security is one

More information

Part F. Reforms in Pensions and in the Taxation of the Capital Market. 1. The Pension Reform

Part F. Reforms in Pensions and in the Taxation of the Capital Market. 1. The Pension Reform Part F 1. The Pension Reform Reforms in Pensions and in the Taxation of the Capital Market In May 2003, the Knesset approved a comprehensive reform in pension funds, under which their investment terms

More information

Joint Economic Forecast Spring 2013. German Economy Recovering Long-Term Approach Needed to Economic Policy

Joint Economic Forecast Spring 2013. German Economy Recovering Long-Term Approach Needed to Economic Policy Joint Economic Forecast Spring 2013 German Economy Recovering Long-Term Approach Needed to Economic Policy Press version Embargo until: Thursday, 18 April 2013, 11.00 a.m. CEST Joint Economic Forecast

More information

South-South Cooperation in China

South-South Cooperation in China Resource Mobilization Information Digest N o 208 February 2013 South-South Cooperation in China Contents 1. Introduction... 2 2. Evolution of Chinese foreign aid policy... 2 3. Resources for Chinese foreign

More information

Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net)

Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Before the U.S.-China Economic and Security Review Commission, hearing on China and the Future of Globalization.

More information

Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget

Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget Congressional Budget Office s Preliminary Analysis of President Obama s Fiscal Year 2012 Budget SUMMARY The Congressional Budget Office s (CBO) Preliminary Analysis of the President s FY 2012 Budget released

More information

FISCAL POLICY: HAS BRAZIL GRADUATED FROM PRO- CYCLICAL POLICIES? Marcio Holland Secretary of Economic Policy Ministry of Finance, Brazil

FISCAL POLICY: HAS BRAZIL GRADUATED FROM PRO- CYCLICAL POLICIES? Marcio Holland Secretary of Economic Policy Ministry of Finance, Brazil FISCAL POLICY: HAS BRAZIL GRADUATED FROM PRO- CYCLICAL POLICIES? Marcio Holland Secretary of Economic Policy Ministry of Finance, Brazil XXXIX Meeting of the Network of Central Banks and Finance Ministries

More information

quality of life. spending water and rebuild its project s costs cost of infrastructure for every

quality of life. spending water and rebuild its project s costs cost of infrastructure for every A Cost Effective Approach to Increasing Investment in Water Infrastructure: The Water Infrastructure Finance and Innovation Authority (WIFIA) Background. High-quality and quality of life in the United

More information

Essay on Development Policy. Implications of Providing Budget Support for Public Expenditure. A Case Study from Uganda

Essay on Development Policy. Implications of Providing Budget Support for Public Expenditure. A Case Study from Uganda EssayonDevelopmentPolicy ImplicationsofProvidingBudgetSupportforPublicExpenditure ACaseStudyfromUganda ThomasBenninger NADELMAS Cycle2008 2010 May2010 TableofContents TABLEOFCONTENTS... 2 TABLEOFFIGURES...

More information

Credit risk management of commercial bank

Credit risk management of commercial bank Available online www.jocpr.com Journal of Chemical and Pharmaceutical Research, 2014, 6(5):1784-1788 Research Article ISSN : 0975-7384 CODEN(USA) : JCPRC5 Credit risk management of commercial bank Qian

More information

June 4, 2014. Honorable Elizabeth Warren United States Senate Washington, DC 20510. Dear Senator:

June 4, 2014. Honorable Elizabeth Warren United States Senate Washington, DC 20510. Dear Senator: CONGRESSIONAL BUDGET OFFICE U.S. Congress Washington, DC 20515 Douglas W. Elmendorf, Director June 4, 2014 Honorable Elizabeth Warren United States Senate Washington, DC 20510 Dear Senator: As you requested,

More information

FISCAL BALANCE AND PUBLIC DEBT. Outline: Chapter 12 FISCAL BALANCE AND PUBLIC DEBT. 5. Burden of the Debt

FISCAL BALANCE AND PUBLIC DEBT. Outline: Chapter 12 FISCAL BALANCE AND PUBLIC DEBT. 5. Burden of the Debt 02/10/2015 C h a p t e r 12 FISCAL BALANCE AND PUBLIC DEBT Public Finance, 10 th Edition David N. Hyman Adapted by Chairat Aemkulwat for Public Economics 2952331 Chairat Aemkulwat, Public Economics 2952331

More information

MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF

MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF MACROECONOMIC ANALYSIS OF VARIOUS PROPOSALS TO PROVIDE $500 BILLION IN TAX RELIEF Prepared by the Staff of the JOINT COMMITTEE ON TAXATION March 1, 2005 JCX-4-05 CONTENTS INTRODUCTION... 1 EXECUTIVE SUMMARY...

More information

Detailed Recommendations 4: Strengthen Discounted Green Loans

Detailed Recommendations 4: Strengthen Discounted Green Loans Detailed Recommendations 4: Strengthen Discounted Green Loans 4 This is a background paper to the report: Establishing China s Green Financial System published by the Research Bureau of the People s Bank

More information

An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London

An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London 09.02.2016 An outlook on the Spanish economy Official Monetary and Financial Institutions Forum (OMFIF), London Luis M. Linde Governor I would like to thank OMFIF and Mr. David Marsh for the invitation

More information

PROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY

PROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY PROJECTION OF THE FISCAL BALANCE AND PUBLIC DEBT (2012 2027) - SUMMARY PUBLIC FINANCE REVIEW February 2013 SUMMARY Key messages The purpose of our analysis is to highlight the risks that fiscal policy

More information

FISCAL POLICY* Chapter. Key Concepts

FISCAL POLICY* Chapter. Key Concepts Chapter 11 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic

More information

Education Funding in South Carolina

Education Funding in South Carolina Education Funding in South Carolina OVERVIEW South Carolina has one of the nation s most complicated public school funding systems. Funding for K-12 schools has rapidly increased year after year, far outpacing

More information

Pension Reform and Implicit Pension Debt in China

Pension Reform and Implicit Pension Debt in China Pension Reform and Implicit Pension Debt in China Jia Kang, Zhang Xiaoyun, Wang Min, Duan Xuezhong (Institute of Fiscal Science, MOF). Evolution of the Pension System for Enterprise Employees in China.

More information

China, The U.S. and Financial Crises. Jorge Salazar-Carrillo and Xu Li*

China, The U.S. and Financial Crises. Jorge Salazar-Carrillo and Xu Li* 1 China, The U.S. and Financial Crises By Jorge Salazar-Carrillo and Xu Li* 1.) Since 1990, and up to 2009, China s Gross National Income has grown by 14 times in current U.S. dollars, following the Atlas

More information

Fiscal Unruliness: Checking the Usual Suspects for Jamaica's Debt Buildup

Fiscal Unruliness: Checking the Usual Suspects for Jamaica's Debt Buildup Inter-American Development Bank Country Department Caribbean Group POLICY BRIEF Fiscal Unruliness: Checking the Usual Suspects for Jamaica's Debt Buildup No. IDB-PB-213 Juan Pedro Schmid February 2014

More information

China s Economic Reforms and Growth Prospects. Nicholas Lardy. Anthony M Solomon Senior Fellow. Peterson Institute for International Economics

China s Economic Reforms and Growth Prospects. Nicholas Lardy. Anthony M Solomon Senior Fellow. Peterson Institute for International Economics China s Economic Reforms and Growth Prospects Nicholas Lardy Anthony M Solomon Senior Fellow Peterson Institute for International Economics Paper Prepared for the CF-40 PIIE 2014 Conference Beijing May

More information

Pre-Test Chapter 11 ed17

Pre-Test Chapter 11 ed17 Pre-Test Chapter 11 ed17 Multiple Choice Questions 1. Built-in stability means that: A. an annually balanced budget will offset the procyclical tendencies created by state and local finance and thereby

More information

S.Y.B.COM. (SEM-III) ECONOMICS

S.Y.B.COM. (SEM-III) ECONOMICS Fill in the Blanks. Module 1 S.Y.B.COM. (SEM-III) ECONOMICS 1. The continuous flow of money and goods and services between firms and households is called the Circular Flow. 2. Saving constitute a leakage

More information

Financial Overview INCOME STATEMENT ANALYSIS

Financial Overview INCOME STATEMENT ANALYSIS In the first half of 2006, China s economy experienced steady and swift growth as evidenced by a 10.9% surge in GDP. In order to prevent the economy from getting overheated and to curb excess credit extension,

More information

Development of Public Private Partnerships (PPPs) in China

Development of Public Private Partnerships (PPPs) in China Development of Public Private Partnerships (PPPs) in China Dr Paul H K Ho Chairman, Quantity Surveying Division The Hong Kong Institute of Surveyors Associate Head, Division of Building Science and Technology

More information

Sub-Saharan Africa return of the Debt Crisis: Debt Financed Development

Sub-Saharan Africa return of the Debt Crisis: Debt Financed Development Sub-Saharan Africa return of the Debt Crisis: Debt Financed Development A case of Zambia By Geoffrey Chongo Jesuit Centre for Theological Reflection 8 th October 2015 Outline Background Current debt situation

More information

FISCAL POLICY* Chapter. Key Concepts

FISCAL POLICY* Chapter. Key Concepts Chapter 15 FISCAL POLICY* Key Concepts The Federal Budget The federal budget is an annual statement of the government s expenditures and tax revenues. Using the federal budget to achieve macroeconomic

More information

Pricing Private Health Insurance Products in China. Chen Tao

Pricing Private Health Insurance Products in China. Chen Tao Pricing Private Health Insurance Products in China Chen Tao Abstract In this paper an overview of how to price private health insurance products in China is given. In the beginning the Chinese private

More information

The Potential for Interest Rate Increases. from the Perspective of the Structure of the Bond Market

The Potential for Interest Rate Increases. from the Perspective of the Structure of the Bond Market NIRA Policy Review No.48 Mar. 2011 The Potential for Interest Rate Increases from the Perspective of the Structure of the Bond Market Hidetoshi Ohashi Managing Director, Morgan Stanley MUFG Securities

More information

THE GROUP OF 8 EXTERNAL DEBT CANCELLATION Effects and implications for Guyana

THE GROUP OF 8 EXTERNAL DEBT CANCELLATION Effects and implications for Guyana THE GROUP OF 8 EXTERNAL DEBT CANCELLATION Effects and implications for Guyana Introduction Guyana is one of the most indebted emerging market economies in the world. In 2004, its total public external

More information

The Law of Energy Management Contract

The Law of Energy Management Contract The Law of Energy Management Contract ZHANG Yudong School of Economic and Trade law, Shandong University of political science and law, China, 250014 zhangyudongde@yahoo.com.cn Abstract: Introducing the

More information

Impact of Global Financial Crisis on South Asia

Impact of Global Financial Crisis on South Asia Impact of Global Financial Crisis on South Asia February 17, 2009 - The global financial crisis hit South Asia at a time when it had barely recovered from severe terms of trade shock resulting from the

More information

Is China Catching Up with the US?

Is China Catching Up with the US? 12 Is China Catching Up with the US? Kenneth Lieberthal Opinion Kenneth Lieberthal Is China Catching Up with the US? While China has emerged as a key player in global affairs, significant challenges to

More information

The Institutional and Legal Base for Effective Debt Management

The Institutional and Legal Base for Effective Debt Management December 2001 The Institutional and Legal Base for Effective Debt Management Tomas Magnusson Paper prepared for the Third Inter-regional Debt Management Conference in Geneva 3-5 December 2001, arranged

More information

The Role of Tax Reform in Comprehensive Deficit Reduction and Fiscal Policy. Martin Feldstein

The Role of Tax Reform in Comprehensive Deficit Reduction and Fiscal Policy. Martin Feldstein For Release on Delivery September 13, 2011 at 2 p.m. The Role of Tax Reform in Comprehensive Deficit Reduction and Fiscal Policy Martin Feldstein Thank you, Mr. Chairman. I am very pleased to have this

More information

CHAPTER 3. Economic Impacts on Olympic Host Countries

CHAPTER 3. Economic Impacts on Olympic Host Countries CHAPTER 3 Economic Impacts on Olympic Host Countries The first Olympic Games originated in Athens, the capital of Greece, in 1896. It lasts for a hundred and eleven years till 2007. The Olympic Games have

More information

Hungary. 1. Economic situation

Hungary. 1. Economic situation 2. COUNTRY NOTES: HUNGARY 125 1. Economic situation has faced considerable challenges to regain fiscal credibility. After almost a decade of persistent, high fiscal deficits and the building up of external

More information

Municipal Credit Conditions and The Efficiency of Tax-Exemption. California Debt and Investment Advisory Commission PRESENTATION FOR: January 11, 2012

Municipal Credit Conditions and The Efficiency of Tax-Exemption. California Debt and Investment Advisory Commission PRESENTATION FOR: January 11, 2012 Municipal Credit Conditions and The Efficiency of Tax-Exemption PRESENTATION FOR: California Debt and Investment Advisory Commission PRESENTED BY: Cadmus Hicks, CFA, PhD Managing Director 312-917-7865

More information

Financial ratio analysis

Financial ratio analysis Financial ratio analysis A reading prepared by Pamela Peterson Drake O U T L I N E 1. Introduction 2. Liquidity ratios 3. Profitability ratios and activity ratios 4. Financial leverage ratios 5. Shareholder

More information

SB0001 Enrolled - 2 - LRB098 05457 JDS 35491 b

SB0001 Enrolled - 2 - LRB098 05457 JDS 35491 b SB0001 Enrolled LRB098 05457 JDS 35491 b 1 AN ACT concerning public employee benefits. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 1. Legislative

More information

FEDERAL RESERVE BULLETIN

FEDERAL RESERVE BULLETIN FEDERAL RESERVE BULLETIN VOLUME 38 May 1952 NUMBER 5 Business expenditures for new plant and equipment and for inventory reached a new record level in 1951 together, they exceeded the previous year's total

More information

The following text represents the notes on which Mr. Parry based his remarks. 1998: Issues in Monetary Policymaking

The following text represents the notes on which Mr. Parry based his remarks. 1998: Issues in Monetary Policymaking Phoenix Society of Financial Analysts and Arizona State University Business School ASU, Memorial Union - Ventana Room April 24, 1998, 12:30 PM Robert T. Parry, President, FRBSF The following text represents

More information

Section 2 Evaluation of current account balance fluctuations

Section 2 Evaluation of current account balance fluctuations Section 2 Evaluation of current account balance fluctuations Key points 1. The Japanese economy and IS balance trends From a macroeconomic perspective, the current account balance weighs the Japanese economy

More information

Reorganization of Financial Services and Life Insurance Demutualization The View from Abroad

Reorganization of Financial Services and Life Insurance Demutualization The View from Abroad Reorganization of Financial Services and Life Insurance Demutualization The View from Abroad by Hironobu Murakami Life Management Research Dept. 1. Introduction The implementation of financial reforms

More information

Anti-Crisis Stimulus Package for Economic Recovery

Anti-Crisis Stimulus Package for Economic Recovery Anti-Crisis Stimulus Package for Economic Recovery (Developing Efficient State Debt Management Policy) The project is implemented in the framework of The East-West Management Institute s (EWMI) Policy,

More information

authority increases money supply to stimulate the economy, people hoard money.

authority increases money supply to stimulate the economy, people hoard money. World Economy Liquidity Trap 1 Liquidity Trap Liquidity trap refers to a state in which the nominal interest rate is close or equal to zero and the monetary authority is unable to stimulate the economy

More information

THE PROCESS OF PLANNING AND INSTITUTIONAL FRAMEWORK FOR POVERTY REDUCTION STRATEGY: THE CASE OF UGANDA.

THE PROCESS OF PLANNING AND INSTITUTIONAL FRAMEWORK FOR POVERTY REDUCTION STRATEGY: THE CASE OF UGANDA. THE PROCESS OF PLANNING AND INSTITUTIONAL FRAMEWORK FOR POVERTY REDUCTION STRATEGY: THE CASE OF UGANDA. By Margaret Kakande Poverty Analyst Ministry of Finance, Planning and Economic Development, Government

More information

Chapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition

Chapter 18. MODERN PRINCIPLES OF ECONOMICS Third Edition Chapter 18 MODERN PRINCIPLES OF ECONOMICS Third Edition Fiscal Policy Outline Fiscal Policy: The Best Case The Limits to Fiscal Policy When Fiscal Policy Might Make Matters Worse So When Is Fiscal Policy

More information

Government employer-sponsored unfunded pension plans -- Revised treatment in the Canadian System of National Accounts

Government employer-sponsored unfunded pension plans -- Revised treatment in the Canadian System of National Accounts I: Introduction Government employer-sponsored unfunded pension plans -- Revised treatment in the Canadian System of National Accounts by Patrick O'Hagan May 2003 In 2000, the Canadian System of National

More information

IW Monetary Outlook December 2015

IW Monetary Outlook December 2015 IW policy paper 37/2015 Contributions to the political debate by the Cologne Institute for Economic Research IW Monetary Outlook December 2015 Weak Credit Growth Hinders Eurozone Inflation to Increase

More information

CANON REPORTS RESULTS FOR FISCAL 1999

CANON REPORTS RESULTS FOR FISCAL 1999 February 14, 2000 CANON REPORTS RESULTS FOR FISCAL 1999 1. CONSOLIDATED RESULTS Millions of yen (except per share amounts) Actual Projected 1999 1998 Change(%) 2000 Change(%) Net sales 2,622,265 2,826,269-7.2

More information

Tax System Challenges in the 21 st Century

Tax System Challenges in the 21 st Century Tax System Challenges in the 21 st Century American taxpayers paid about $1.9 trillion in combined federal taxes, including income, payroll, and excise taxes, in fiscal year 2004. These taxes, along with

More information

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP OCTOBER 2013 THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP Introduction The United States has never defaulted on its obligations, and the U. S. dollar and Treasury securities are at the

More information

Stability Programme of the Netherlands. December 2008 Addendum

Stability Programme of the Netherlands. December 2008 Addendum Stability Programme of the Netherlands December 2008 Addendum 1. Introduction The European Council of 11 and 12 December agreed on a European Economic Recovery Plan. This European Economic Recovery plan

More information

Euro Zone s Economic Outlook and What it Means for the United States

Euro Zone s Economic Outlook and What it Means for the United States WELCOME TO THE WEBINAR WEBINAR LINK: HTTP://FRBATL.ADOBECONNECT.COM/ECONOMY/ DIAL-IN NUMBER (MUST USE FOR AUDIO): 855-377-2663 ACCESS CODE: 71032685 Euro Zone s Economic Outlook and What it Means for the

More information