Is Deficit-Financed Growth Limited? Policies and Prospects in An Election Year
AbstractWynne Godley, our Levy Institute colleague, has warned since 1999 that the falling personal saving and rising borrowing trends that had powered the US economic expansion were not sustainable. He also warned that when these trends were reversed, as has happened in other countries, the expansion would come to a halt unless there were major changes in fiscal policy. Not long ago, official circles insisted that monetary policy was the most desirable tool, and that fiscal deficits were not only unnecessary but also harmful(ERP, 2000, p.31-34; Greenspan, 2000). Some economists, notably Edmund Phelps of Columbia University, went so far as to suggest that the economic expansion was not caused by rising demand, but rather because growth had become ÔstructuralÕ (Financial Times, August 9, 2000).
Download InfoIf 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.
Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Strategic Analysis Archive with number 04-4.
Date of creation: Apr 2004
Date of revision:
Contact details of provider:
Web page: http://www.levyinstitute.org
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dimitri B. Papadimitriou & Anwar Shaikh & Claudio H. dos Santos & Gennaro Zezza, 2002. "Is Personal Debt Sustainable?," Economics Strategic Analysis Archive 02-11, Levy Economics Institute.
- Dimitri B. Papadimitriou & L. Randall Wray, . "What to Do with the Surplus: Fiscal Policy and the Coming Recession," Economics Policy Note Archive 98-6, Levy Economics Institute.
- Dimitri B. Papadimitriou & Anwar M. Shaikh & Claudio H. Dos Santos & Gennaro Zezza, 2005. "How Fragile is the U.S. Economy?," Economics Strategic Analysis Archive sa_mar_05, Levy Economics Institute.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards).
If references are entirely missing, you can add them using this form.