Prudence or Profligacy: Deficits, Debt, and Fiscal Consolidation
Over the last quarter century, public finances have been under pressure in most OECD countries as deficits and debts rose under the pressure of relatively slow growth and high interest rates. This, in turn, has affected the welfare state, since efforts at containing deficits have often been concentrated on public expenditure. Much of the literature argues that this is desirable, since curbing deficits via tax increases seldom succeeds. A medium-term survey of OECD country experience suggests a less clear-cut conclusion. In a number of countries which were able to curb debt/GDP ratios, the bulk of the adjustment did, indeed, come from spending cuts (but was, also, in some cases helped by rapid growth and/or currency depreciation). In several, however, tax increases also appear to have succeeded in reducing deficits and debt. Copyright 2006, Oxford University Press.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:22:y:2006:i:3:p:411-425. 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: (Oxford University Press)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.