Federal Deficit as a % of GDP


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Looking very much like the automatic stabilizers turned the tide around year end, and subsequent fiscal adjustments are helping firm things up as well.

But there was a lot of work to do to add back the financial assets to the government lost during the surplus years of the late 90’s, so we may linger here a little longer than in previous cycles while the non govt sector’s net financial assets are restored to levels sufficient to support growth and employment.


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