Advanced Search
MyIDEAS: Login to save this article or follow this journal

Budget Deficit Alarmism Is Sabotaging Growth

Contents:

Author Info

  • Thomas Palley

Abstract

Fiscal conservatives are using the recession-induced spike in budget deficits to revive fiscal austerity, which is based on flawed economic analysis and is not supported by thoughtful budget analysis. Although the need for deficits to provide short-term Keynesian fiscal stimulus is recognized, there is little understanding of the mediumterm need for budget deficits to facilitate private-sector deleveraging and to restore growth. The U.S. economy needs a new engine of growth, and deficit-financed public investment can play an important role. The fiscal austerity agenda risks creating a "vicious" circle in which austerity slows growth, necessitating further austerity.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=C648K378L8367502
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Challenge.

Volume (Year): 54 (2011)
Issue (Month): 1 (January)
Pages: 6-31

as in new window
Handle: RePEc:mes:challe:v:54:y:2011:i:1:p:6-31

Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106043

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:mes:challe:v:54:y:2011:i:1:p:6-31. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.