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Fiscal Policy Case Study

Case Title:

US Fiscal Deficit

Publication Year : 2004

Authors: Sivaramkrishna V & G Srikanth

Industry: General Business


Case Code: FCP0001

Teaching Note: Not Available

Structured Assignment: Not Available

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The Congressional Budget Office projected that the US budget would run a deficit of $500 billion for the fiscal year 2005. The US, which had a surplus of $99 billion in 2000, recorded a deficit of $375 billion by the end of 2003. The International Monetary Fund, which had been a strong critic of budget deficits, came out with many reports showcasing the need for controlling the spiraling budget deficit of the US.

Pedagogical Objectives:

  • To discuss the US fiscal deficits and the expected and possible ramifications on the US as well as the world economy.

Keywords : US fiscal deficits, Declining US dollar, Balance of Payments, Rising interest rates, Monetary Policy Case Study, Unemployment compensation, Budget deficit and surplus, Tax revenue, US Gross Domestic Product, International Monetary Fund, Economics stimulus package, US public debt, US economy, Recession, Budget expenditure on subsidies, US Monetary Policy

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