deficit - The New School SCEPA

This paper has revisits the question of whether rising deficits increase interest rates, and whether deficit-cutting (and balanced-budget) policies are conducive to economic growth.

The paper provides a modification of the standard textbook income – expenditure model that better accounts for the effect of imports.

Economic policy debate in the United States and other developed economies has been dominated by talk of lowering fiscal deficits through spending reductions.

A simple model illustrates interactions between the "primary" fiscal deficit (total deficit minus interest payments), economic growth, and debt.