Countries can reduce their national debt by narrowing the budget deficit or achieving a primary surplus (the fiscal balance minus interest payments on outstanding debt).

BERKELEY The United States is beset by four deficits a fiscal deficit, a jobs deficit, a deficit in public investment, and an opportunity deficit.

The fiscal deficit continues to present a daunting challenge in Japan.

For example, Egypt s fiscal deficit will exceed 11 of GDP this year.

But fiscal sustainability is no cure for Greece s chronically large trade deficit.

We can apply this reasoning to the United States unsustainable fiscal deficit.

And that would push a 7 of GDP fiscal deficit to 11 .

In the late 1970 s, the country faced a debilitating fiscal deficit.

The proposed solution a commission to recommend a path to balance the primary deficit (the deficit excluding interest payments) in 2015.

But certain fiscal decisions, and most critically the level of the fiscal deficit, can be delegated to an independent board.

Unfortunately, the US fiscal deficit is projected to remain high for many years.

Spain, for example, was not running a fiscal deficit coming into the crisis.

At the same time, the fiscal deficit is more than 7 of GDP.

For fiscal year 2005 the deficit is currently projected to be 92.4 million.

A fiscal rule is any pre specified mechanism that constrains spending or the deficit.

The fiscal deficit was equivalent to 3 of GDP in 2009, which generated 3 GDP growth, while the deficit in 2008 was literally zero.

The anticipated increase in the fiscal deficit is striking the central plan discussed by Bush s Council of Economic Advisers would according to the Council s own estimates increase America s fiscal deficit by 2 trillion over the next decade.

We can apply this reasoning to the United States unsustainable fiscal deficit. As is well known, closing this deficit requires less spending or more taxes.

The difference between the overall deficit and the primary deficit implies that the interest on the Greek national debt this year will be 4.1 of GDP.

That is how the turnaround of the economy took place by reducing the fiscal deficit and converting the external balance of payments from deficit to surplus.

A large fiscal deficit increases the need for foreign funds to avoid crowding out private investment.

America s gravest fiscal problem is the short and medium run deficit between tax revenues and spending.

The US is starting on its privatization venture with a fiscal deficit of 4 of GDP.

The fiscal deficit in the United States this year is likely to exceed 10 of GDP.

So, over time, fiscal accounts worsen automatically, creating a vicious circle monetized fiscal deficits lead to inflation and a widening gap in the parallel exchange rate market which worsens the fiscal deficit.

In fact, there is a strong risk that this legislation would ultimately add to the fiscal deficit.

The first is between austerity and growth that is, short term deficit reduction and additional fiscal stimulus.

To be sure, executives and entrepreneurs like to shake their heads over the current US fiscal deficit.

If the presidential promise to reduce the fiscal deficit was really a commitment to cut spending and raise taxes, we could see today s dangerous deficit trajectory be reversed.

The International Monetary Fund was predicting only that Greece would have a zero primary budget deficit in 2013.

What does this imply for Europe s austerity debate? If foreign debt matters more than public debt, the key variable requiring adjustment is the external deficit, not the fiscal deficit.

For example, America s huge agriculture subsidies contribute to its fiscal deficit, which translates into a larger trade deficit. But agricultural subsidies have consequences for China and other developing countries.

The Bureau of Economic Research projected a deficit of 9.6 million at the end of fiscal year 2004.

The Plaza Accord was successful in reducing the U.S. trade deficit with Western European nations but largely failed to fulfill its primary objective of alleviating the trade deficit with Japan.

Second, the effects of austerity were exacerbated by the choice to pursue nominal, rather than structural, fiscal deficit targets.

In some countries, fiscal policy is crippled by legitimate fears that more deficit spending will trigger government debt crises.

That was how we brought the fiscal deficit down from 8 per cent to less than 4 per cent.

In contrast to monetary policy, the US president does have a powerful and direct impact on future fiscal deficits. If the presidential promise to reduce the fiscal deficit was really a commitment to cut spending and raise taxes, we could see today s dangerous deficit trajectory be reversed.

It had a fiscal surplus before the crisis after the crisis, its deficit increased to more than 11 of GDP.

We can also choose how much revenue to raise today, rather than in the future (by varying the fiscal deficit).

Spending it would not add to any country s fiscal deficit. All they need to do is to tap into it.

Years later, he spoke of his own rather cavalier attitude toward the budget deficit and other monetary or fiscal problems.

So those concerned with job losses in US manufacturing should join the chorus lobbying for a much smaller fiscal deficit.

Surprisingly, Koizumi was almost successful. Japan s primary deficit of 28 trillion in 2002 was reduced to only 6 trillion by 2007.

To put that task in perspective, in the last 25 years, Greece ran an average primary deficit of 2 per year.