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  • About
  • Knowledge Centre
    • Economic Growth and the Business Cycle
    • Monetary Policy and Inflation
    • Taxes and Government Spending
    • Trade and Balance of Payments
    • Financial Markets
  • FX Forecasts
  • Services
  • Forecasting Tools
  • Analysis

Tag Archives: Fiscal Deficits

Why Crowing Out Has Nothing To Do With Rising Interest Rates

Taxes and Government SpendingBy Stuart AllsoppNovember 7, 2018Leave a comment

Intro: Fiscal deficits crowd out private investment by reducing savings available in the economy for the private sector to invest. Under free market conditions, the reduction in real savings will tend to put upside pressure on interest rates, but this is not necessarily the case if the central bank chooses to offset these upward pressures…

The Trouble with Fiscal Stimulus Policies

Economic Growth and the Business CycleBy Stuart AllsoppJuly 28, 2018Leave a comment

Intro: Fiscal stimulus measures often appear to work because the benefits that result are highly concentrated and visible while the costs are disbursed and invisible. When fiscal stimulus does ‘work’ it does so by preventing the emergence of idle resources resulting from the unwinding of economic imbalances, but in doing so it creates additional distortions.…

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