1. Continuous fiscal deficits are more likely to present an inflation risk than one-off deficits designed to meet a short-term private spending decline.

2. When a nation runs a current account deficit accompanied by a government sector surplus (of equal proportion to GDP as the external deficit), we know that the private domestic sector will be spending less than they are earning.

3. To maintain financial stability, the monetary base has to be driven by changes in the money supply.