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Definition of 'Fiscal Imbalance'
A situation where all of the future debt obligations of a government are different from the future income streams. Both of the obligations and the income streams are measured at their respective present values, and will be discounted at the risk free rate plus a certain spread.
A vertical fiscal imbalance describes a situation where revenues do not match expenditures for different levels of government. A horizontal imbalance describes a situation where revenues do not match expenditures for different regions of the country.
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Investopedia explains 'Fiscal Imbalance'
To measure the fiscal imbalance, take the difference between the present value of all future debt and the present value of all income streams.
At any given time, there will be a fiscal imbalance for a particular government; a sustained and positive balance will be detrimental to society and the economy. If there is a sustained positive fiscal imbalance, then tax revenues will likely increase in the future, causing both current and future household consumption to fall.
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Search results for 'Fiscal Imbalance'
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http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/effects-fiscal-policy.asp
... Level; 4.19 The Equation of Exchange; 4.20 Inflation; 4.21 Phillips Curve; 4.22
Fiscal Policy Basics; 4.23 Effects of Fiscal Policy; 4.24 ...
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http://www.investopedia.com/articles/economics/12/fiscal-or-monetary-policy.asp
... and a slowing demand for domestic products could lead to a temporary trade imbalance. ...
Fiscal policy measures also suffer from a natural lag, or the delay in ...
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http://stocks.investopedia.com/stock-analysis/2010/Apply-Patience-To-Applied-Materials-AMAT-INTC-AAPL-LCRX-ASML-AIXG1122.aspx
... Nevertheless, the company did put out fiscal first quarter revenue guidance that
was ... electronics sectors that AMAT serves are in a weird state of imbalance. ...
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http://stocks.investopedia.com/stock-analysis/2010/Retailers-Heavily-Invested-In-Canada-LTD-WMT-COST-SHLD-GPS-HD-BBY0714.aspx
... operating in Canada for a long time and look to benefit from this economic imbalance. ...
later, it has 77 stores coast to coast and revenues in fiscal 2009 of ...
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http://stocks.investopedia.com/stock-analysis/2009/Homebuilders-Management-Commentary-A-Review-CTX-DHI-PHM0213.aspx
... the homebuilding industry continued to deteriorate during our first fiscal quarter,
characterized ... that kept inventory high, meant a further imbalance of supply ...
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http://stocks.investopedia.com/stock-analysis/2011/The-Impact-Of-Rising-Coffee-Prices-MCD-SBUX-SJM-THI-KFT0324.aspx
... grower, is currently withholding inventories, thus further fueling the supply and
demand imbalance. ... by approximately 5% and EPS to reach $2.40 in fiscal 2011. ...
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http://stocks.investopedia.com/stock-analysis/2009/Looking-For-Ideas-At-The-Value-Investing-Congress-CXW-ITB-GLD1026.aspx
... This supply demand imbalance should give a strong growth wind to the business. ... and
believes that as long as our government's "monetary and fiscal policies are ...
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http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-fair-dealing.asp
... Level; 4.19 The Equation of Exchange; 4.20 Inflation; 4.21 Phillips Curve; 4.22
Fiscal Policy Basics; 4.23 Effects of Fiscal Policy; 4.24 ...
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http://financialedge.investopedia.com/financial-edge/0911/Why-Todays-Recession-Tops-The-Great-Depression.aspx
... included in GDP, which totaled $14,700 billion for fiscal year 2010 ... oil, oppressive
regulatory environment, $40 billion monthly trade imbalance, bloated federal ...
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http://www.investopedia.com/articles/07/tax_cuts.asp
... In 1986, Ireland faced a fiscal crisis. ... It seems that every politician who
opposes tax cuts uses this imbalance to fight the cut. ...
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