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Fiscal Policy


Bond Free? (5/12/2010)

Treasury bonds are important instruments in regulating the money supply.

Keywords: budget deficit, budget surplus, debt, interest rate, money supply, quantitative easing, Treasury bonds

Crowding-out Effect (11/2/2011)

Government deficit financing could crowd out private investment.

Keywords: budget deficit, crowding out, investment, saving

Deficit and Debt (11/2/2011)

Chronic budget deficits could lead to a ballooning debt/GDP ratio.

Keywords: debt, deficit, GDP, inflation, interest rate, solvency

Domestic Content (5/13/2010)

Economic stimulus might end up stimulating foreign economies more than the domestic economy when the US is so dependent on imports.

Keywords: bullet train, Buy American, credit crunch, domestic content, expenditure multiplier, fiscal policy, recession, Stimulus, wind farm

Eat Your Cake Now (11/2/2011)

Who doesn't like to eat their cake and have it at the same time?

Keywords: budget deficit, IOU, Social Security, Trust Fund

Eat Your Cake Now - cartoon transcript (6/22/2012)

Who doesn't like to eat their cake and have it at the same time?

Keywords: budget deficit, IOU, Social Security, Trust Fund

Front Loading (5/12/2010)

Cash for clunkers and home-buyer tax credit provided huge subsidies for each incremental sale but failed to sustain the car and housing markets.

Keywords: cash for clunkers, channel stuffing, Economic stimulus, expenditure multiplier, front loading, home-buyer tax credit, incentive, incremental sale, pump priming, subprime loan, subsidies

Liquidity Trap (6/17/2010)

Even with short-term interest rates close to zero, the US economy has failed to respond to cheap money because of anemic bank lending.

Keywords: inflation rate, interest rate spread, interest rates, lending, Liquidity trap, loans, negative interest rates, nominal interest rates, real interest rates, yield curve

Shaky Union (5/12/2010)

Even though members of the European Union have no control over their domestic monetary policies, their undisciplined domestic fiscal policies can still wreak great havoc for the financial health of the Union.

Keywords: balanced budget, budget deficit, California, debt, debt/GDP ratio, depreciation, EU, euro crisis, European Union, exchange rate, fiscal policy, Germany, Greece, monetary policy

The Greek Debt Tragedy (5/12/2010)

Heavily indebted Greece was taken to task by bond investors who demanded higher yield to offset higher default risk and rating agencies who threatened to downgrade its bonds.

Keywords: bond rating, Bond yield, CDS, credit default swap, debt, deficit, EU, Greece