Or public spending all European leaders adamantly want to reduce government spending.

The fundamental economic effect is to reduce government spending.

Stability of social spending is crucial, inasmuch as instability and fluctuations reduce the efficiency of social spending.

Net government spending also helped to reduce overall inequality over those years.

If that decline continues, it will inevitably reduce the pace of consumer spending.

Consumers can reduce spending on other discretionary items and use the savings to pay higher gasoline prices.

Those who want to control, reform, and reduce government spending seem to have the big picture right.

Overspending countries are now retrenching, owing to the need to reduce their private and public spending, to import less, and to reduce their external deficits and deleverage.

If the increase were considered permanent, however, it would make sense to increase spending or reduce tax pressure.

A higher exchange rate would reduce their current account surpluses, because they are unable or unwilling to reduce their savings and sustain growth through higher spending on domestic consumption.

At that point, it will be important to develop policies to reduce gradually the relative level of government spending in order to shift to fiscal surpluses and reduce the debt burden.

Nor has Thatcherite policy succeeded in one of its chief aims to reduce the share of government spending in national income.

For example, both Turkey and Greece could reduce their military spending (though naturally to varying degrees, given their respective geopolitical environments).

In advanced countries, governments will eventually be forced to reduce spending, and central banks will withdraw from emergency credit provisions and guarantees.

Such reforms should appeal to rich and poor countries alike, as they would reduce spending on energy and dependence on oil imports.

The only counterargument is that slower fiscal adjustment would further reduce confidence and thereby defeat the purpose by resulting in lower private spending.

Indeed, the government has emphasized that Brazil will be even more insulated as efforts to cut spending reduce dependence on external capital flows.

The resulting increase in real long term interest rates will reduce all forms of interest sensitive spending, adding further to the economy s weakness.

Painful deleveraging less spending and more saving to reduce debt and leverage remains ongoing in most advanced economies, which implies slow economic growth.

Even more significant, shifting income from state owned enterprises to middle class workers and increasing consumer spending will reduce China s enormous saving rate.

If they have built up large, monetized fiscal deficits, they should raise taxes, reduce spending, and mop up excess liquidity sooner rather than later.

As demand falls, businesses will reduce production, leading to lower employment and incomes, which in turn will lead to further cuts in consumer spending.

Given that the world has surpassed the 1 trillion mark in global defence spending, obstacles to reallocating defence spending are all the more challenging to overcome, as are efforts to address ways to reduce armed conflict and violence.

But the macroeconomic weakness in the US now goes beyond the decreased supply of credit. Falling house prices reduce household wealth and therefore consumer spending.

Without a strategy for growth, an effort to reduce government spending, and a policy to stop deflation, a tax hike will not solve the problem.

There would be more reason to reduce taxes in Norway, for example, than in Latin America, where the general course would be to increase spending.

In that way, we can make investment and social spending sustainable in the medium and long term and thereby reduce our dependence on external resources.

Government spending especially on unemployment benefits, aid to states, and some construction projects probably helped avert a more wrenching downturn, but continued red ink worries households, which are also trying to rebuild savings and reduce debt after a spending binge.

Indeed, critics argue that raising public investment conflicts with the drive to reduce deficits, and warn of higher interest rates on the back of further spending.

Fifth, the higher the unemployment rate goes, the wider budget deficits will become, as automatic stabilizers reduce revenue and increase spending (for example, on unemployment benefits).

And negotiations are under way to cut spending more and raise taxes in order to reduce further the fiscal deficits projected for 2011 and later years.

A world where over spending countries need to reduce domestic demand and boost net exports, while over saving countries are unwilling to reduce their reliance on export led growth, is a world where currency tensions must inevitably come to a boil.

A one dollar spending cut was believed to reduce GDP by more than one dollar, so that fiscal retrenchment was economically costly (while, conversely, stimulus was effective).

First, front loaded fiscal austerity however necessary is accelerating the contraction, as higher taxes and lower government spending and transfer payments reduce disposable income and aggregate demand.

Without revealing which programs he would reduce, Romney promises to slash federal spending by more than 500 billion in 2016, capping it at 20 of GDP thereafter.

13. Calls upon the Government to further reduce military spending and to allocate adequate budgets to those institutions and programmes that are given priority under the peace accords

So we need to reduce by roughly ten fold the cost of cutting emissions. We can achieve this by spending dramatically more researching and developing low carbon energy.

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.

Spending. Obama has dramatically increased spending.

Greece was then given unprecedented amounts of highly subsidized finance to enable it to reduce gradually its excessive spending. But now, after so much European and global generosity, Stiglitz and other economists argue that some of Greece's debt must be forgiven to make room for more spending.

The need then will be for more spending on education and training the only thing that in the long run will make American workers more productive and reduce income inequality.

The third risk is that rising oil prices reduce investor confidence and increase risk aversion, leading to stock market corrections that have negative wealth effects on consumption and capital spending.

The Government is consulting with UNMIK as it works to heed advice from the International Monetary Fund to reduce the budget ceiling to avoid unsustainable expansion, particularly in recurrent spending.

His delegation had long stressed the need to reduce spending on such items as consultants , contractual services and travel of staff , but the issue had not yet been effectively addressed.

If they take their fiscal deficits (and a potential monetization of these deficits) seriously and raise taxes, reduce spending, and mop up excess liquidity, they could undermine the already weak recovery.