Title:
Fiscal reforms that work
Personal Author:
Series:
Economic issues (International Monetary Fund) 4
Publication Information:
Washington, D C: International Monetary Fund, 1996
ISBN:
9781557756244
Added Author:
Added Corporate Author:
Available:*
Library | Item Barcode | Call Number | Material Type | Item Category 1 | Status |
---|---|---|---|---|---|
Searching... | 30000004123042 | HJ135 M32 1996 | Open Access Book | Book | Searching... |
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Summary
Summary
Reducing the budget deficit is not easy. Keynesian theory suggests thatlowering government expenditures and raising revenues can lead to afalloff in economic activity. This paper argues the neoclassical approach - that a firm and credible reduction in expenditures, by engendering confidence that taxes will be less burdensome in the future,may lead to lower interest rates, boost consumption, and increaseinvestment spending.