You can't get out of a crisis caused by excessive public and private sector borrowing with a further increase in government borrowing.
However, when central banks pay interest on reserves or a deposit facility, this interest rate is rarely the one used to set the target for short-term private sector borrowing rates.
"Expectations for tapering off of the Fed's outcome-based purchases have been pushed back due to recent softening in the economic data, " according to a statement from the private sector Treasury Borrowing Advisory Committee released on Wednesday.
That is, it assumes that when the SSA lends a dollar to the Treasury, the result is one less dollar of private-sector borrowing rather than one more dollar of government spending or one more dollar of tax cuts.
Treasury officials are still, however, sceptical of Mr Prescott's leasing plan on the grounds that it involves no real transfer of risk to the private sector and breaks public borrowing rules.
By borrowing from the private sector to pull GDP forward to today what would otherwise be consumed in the future, we are boosting our current GDP at the expense of the next generation.
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Higher borrowing costs deter private-sector companies, but do not discourage inefficient state-owned enterprises, because they are less bothered about their return on capital.
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By contrast, housing associations' borrowing counts as private-sector loans.
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In addition, government borrowing could crowd out the private sector.
Keynesians once again believe that growth is as simple as Washington taxing or borrowing away resources from the private sector so that it can be spent from the Commanding Heights.
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The reason is simple: every dollar the government spends must first be taken from the private sector, either in the form of taxes or borrowing.
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If lenders had had better information about the borrowing of South Korea's private sector or the reserves of Thai banks, they would have pulled back sooner, and the eventual problems would have been less severe.
Whether they fund their waste through taxing, borrowing or printing, they smother the private sector.
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The CIT allows Mr Emanuel to tap the private sector for money, rather than just raising taxes and borrowing.
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Gillian Tett explains that while the private sector is de-leveraging, the public sector is borrowing and spending more than ever.
The Treasury is understandably suspicious of cosmetic wheezes that add to public borrowing without any transfer of risk to the private sector.
Others say that private-sector efficiency could never have compensated for its higher costs of borrowing and requirement to turn a profit.
But when Mr Osborne drew up his plans to cut public borrowing, he did think he could count on the private sector - especially private sector demand from the rest of the world - to fill most of the gap.
The government's rampant borrowing would be less worrying were it offset by saving in the private sector.
The recent increase in government borrowing may not be cause to panic in the short term so long as private-sector demand is weak.
While the private sector has deleveraged in the U.S., the public sector has filled the void with more borrowing.
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That reasoned borrowing is the definition fiscal sanity and a prerequisite for a light regulatory hand on the private sector.
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The main reason to worry about government borrowing is that it could push up long-term interest rates, crowd out private-sector investment and hamper growth.
The Post Office's management, for its part, believes that the Treasury might be prepared to bend its borrowing rules if it was persuaded that the business was going to be subject to private-sector disciplines.
Higher government borrowing also tends to divert savings and investment capital that would otherwise flow into the jobs-creating private sector.
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