Government debt

puzzle. According to the capital asset pricing model (CAPM), investors that hold riskier financial assets should be compensated with higher rates of returns. Studies have shown that over a 70-year period, stocks yield average returns that exceed government bond returns by 6-7%. Stock real returns are 10%, whereas bond real returns are 3%. However, academics believe that an equity premium of 6% is extremely large and would imply that stocks are considerably risky to hold over bonds. Conventional economic

the information truthfully and fairly; and that they conform to the best accounting practice in their treatment of the various measurements and valuations. B bad debt A debt which is considered to be uncollectable and is, therefore, written off either as a charge to the profit and loss account or against an existing doubtful debt provision. balance sheet A statement of the financial position of an entity at a given date disclosing the assets, liabilities and accumulated funds such as shareholders’

the application of economics to areas such as discrimination, crime and the family, his answers involved market mechanisms. Mr Becker argued that immigration was out of kilter because of the absence of a price that would match supply and demand. Governments, he suggested, could use economic principles to allocate visas, either by selling the right to migrate at a price that called forth a desired number of migrants, or by auctioning immigrant visas. As with any price, one for immigration would allocate

have cut costs and pushed through big reforms. Without the option of currency devaluation, France has resorted to public spending and debt. Even as other EU countries have curbed the reach of the state, it has grown in France to consume almost 57% of GDP, the highest share in the euro zone. Because of the failure to balance a single budget since 1981, public debt has risen from 22% of GDP then to over 90% now. The business climate in France has also worsened. French firms are burdened by overly

males who were between 20 and 30 years of age! On the scale of the population, this was 35% more than the Austro-Germans. In Verdun, 700 000 men were killed on both sides. 80% of France’s industrial equipment was destroyed and it now carried a huge debt towards the USA: 11 billion dollars. Quite logically, from the French point of view, Germany had now to pay its due! France could rely on its huge colonial empire: Indochina, Lebanon and most of North and Western Africa. Germany was not fairing

around the world, the moment its growing power was threatened by the civilian leadership in America, the apparatus of empire came home to roost.     The “Secret Government” and the Bay of Pigs   In January of 1959, the Cuban Revolution ousted the military strong man and American-ally Batista, and installed the Communist government of Fidel Castro. Beginning in October of 1959, the United States began a covert bombing and strafing campaign against Cuba, and in the early months of 1960, the US

scope Financial instruments are addressed in three standards: IAS 32, which deals with distinguishing debt from equity and with netting; IAS 39, which contains requirements for recognition and measurement; and IFRS 7, which deals with disclosures. The objective of the three standards is to establish requirements for all aspects of accounting for financial instruments, including distinguishing debt from equity, netting, recognition, derecognition, measurement, hedge accounting and disclosure. The scope

financement des dépenses d’investissement dans les 41 Ricardo D. (1820), « Essay on the Funding System », Contribution to the Supplement of the Encyclopaedia Britannica, contribution fondée sur le texte du Dr. Robert Hamilton, (1813), On the National Debt, 3rd ed., 1818. 42 The « so-called Barro-Ricardo » principle, qui a tout de R. Barro ... mais très peu de D. Ricardo (1820), si on lit avec attention la thèse de celui-ci dans la référence rappelée ci-dessus. 43 « Crowding out or crowding in »

financement des dépenses d’investissement dans les 41 Ricardo D. (1820), « Essay on the Funding System », Contribution to the Supplement of the Encyclopaedia Britannica, contribution fondée sur le texte du Dr. Robert Hamilton, (1813), On the National Debt, 3rd ed., 1818. 42 The « so-called Barro-Ricardo » principle, qui a tout de R. Barro ... mais très peu de D. Ricardo (1820), si on lit avec attention la thèse de celui-ci dans la référence rappelée ci-dessus. 43 « Crowding out or crowding in » effects

reduced. In the early 1990s, a mechanism was established which allows the Federal Government to withhold 20 per cent of all taxes and contributions earmarked for social actions. These earmarked funds amount to billions of reals used every year to ensure the required surplus for paying interest on and amortising the country's debt 11 . In other words, inequality is enhanced because, on the one hand, the wealthiest (public debt creditors) are favoured and, on the other hand, the assistance provided to poorer