2019-12-25 19:46:00 Wed ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
Former White House chief economic advisor Nouriel Roubini discusses the major limits of central-bank-driven fiscal deficits. The International Monetary Fund (IMF) projects subpar global economic growth due to the recent trifecta of the tentative Sino-U.S. trade agreement, geopolitical energy tension in the middle east, and a cloudy economic outlook for Britain and E.U. in light of soft Brexit trade uncertainty. These primary global tail risks anchor inflation expectations worldwide, so central banks engage in tacit monetary policy coordination in accordance with the tripartite congressional mandate of maximum sustainable employment, price stability, and financial market stabilization.
With greater government bond issuance, central banks can help fund fiscal deficits that manifest in the form of both tax cuts and infrastructure expenditures. Left-wing proponents of Modern Monetary Theory argue that larger permanent fiscal deficits help stimulate economic growth when central banks monetize these fiscal deficits in the absence of runaway inflation and economic slack.
However, Roubini argues that the current monetization of fiscal deficits cannot be a sustainable policy response in the long run. Either the global economy eventually experiences a supply shock due to pervasive shortages of oil and natural gas, or an inflationary shock becomes a major economic disturbance worldwide.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-11-13 12:30:00 Tuesday ET

President Trump promises a great trade deal with China as Americans mull over mid-term elections. President Trump wants to reach a trade accord with Chinese
2018-02-27 09:35:00 Tuesday ET

Fed's new chairman Jerome Powell testifies before Congress for the first time. He vows to prevent price instability for U.S. consumers, firms, and finan
2018-07-23 07:41:00 Monday ET

President Trump now agrees to cease fire in the trade conflict with the European Union. Both sides can work together towards *zero tariffs, zero non-tariff
2024-03-26 09:30:00 Tuesday ET

Stock Synopsis: ESG value and momentum stock market portfolio strategies Since 2013, we have been delving into the broad topics of ESG (Environmental, So
2025-10-13 12:32:00 Monday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund
2018-04-05 07:42:00 Thursday ET

CNBC news anchor Becky Quick interviews Berkshire Hathaway's Warren Buffett in light of the recent stock market gyrations and movements. Warren Buffett