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How good are the government’s deficit and debt projections and should we care?

Kliesen, Kevin L.; Thornton, Daniel L. - In: Review (2012) Jan, pp. 21-39

Each year, the Congressional Budget Office (CBO) publishes its Budget and Economic Outlook. The CBO’s deficit projections for the current fiscal year (FY) and the next 10 FYs are widely followed because they provide an assessment of the medium-term budget outlook based on current law and a...

Persistent link: https://www.econbiz.de/10009416054

The expected federal budget surplus: how much confidence should the public and policymakers place in the projections?

Kliesen, Kevin L.; Thornton, Daniel L. - In: Review (2001) Mar, pp. 11-24

When the government runs a deficit, it can borrow from the public—that is, it can create debt. Conversely, when the government runs a surplus, it can retire that debt. For the past three years, the federal government has recorded budget surpluses, and both the White House Office of Management...

Persistent link: https://www.econbiz.de/10005726131

The effectiveness of unconventional monetary policy: the term auction facility

Thornton, Daniel L. - In: Review (2011) Nov, pp. 439-454

(LIBOR) rates and equivalent-term Treasury rates by reducing the liquidity premium embedded in LIBOR rates. This paper … suggests that rather than reducing the liquidity premium in LIBOR rates, the announcement of the TAF increased the risk premium …

Persistent link: https://www.econbiz.de/10009364685

The relationship between the daily and policy-relevant liquidity effects

Thornton, Daniel L. - In: Review (2010) Jan, pp. 73-88

The phrase "liquidity effect" was introduced by Milton Friedman (1969) to describe the first of three effects on … interest rates caused by an exogenous change in the money supply. The lack of empirical support for the liquidity effect using … liquidity effect could be obtained with daily data - the daily liquidity effect. This paper investigates the implications of the …

Persistent link: https://www.econbiz.de/10008636065