scholarly journals Government Deficits in Large Open Economies: The Problem of Too Little Public Debt

2016 ◽  
Author(s):  
Willem H. Buiter ◽  
Anne C. Sibert
Keyword(s):  
Public Debt ◽  
Open Economies ◽  
Government Deficits

scholarly journals Government Deficits And The Public Debt: The Endless Controversy

2011 ◽  
Vol 1 (1) ◽  
pp. 22
Author(s):  
Frank J. Bonello
Keyword(s):  
Interest Rates ◽  
Federal Government ◽  
Public Debt ◽  
Relative Size ◽  
American People ◽  
Budget Deficits ◽  
Government Budget ◽  
The Public ◽  
Government Deficits ◽  
The One

No economic topic has attracted more attention during the 1980s than the size of Federal government budget deficits and the corresponding rapid rise in the public debt. Crowding out news regarding Third World debt problems, U.S. foreign trade deficits, and the break up of American Telephone and Telegraph, Federal government budget deficits have been blamed for everything from high interest rates to the deterioration in the moral fiber of the American people. Deficits and debt have also caused political reversal: historically free spending Democrats blaming Reagan deficits for a variety of economic ills while the conservative Republican president treats the deficit with benign neglect.The purpose of this paper is not to answer all of the questions that have been raised regarding the causes and consequences of government deficits and debt. The initial concern is instead with the facts and figures on the absolute and relative size of the Federal governments recent deficits and debt. Next certain measurement issues are addressed for there is a continuing debate regarding appropriate procedures for expressing the governments budgetary outcomes. The third and final section of the paper reviews some of the arguments, theoretical and empirical, on the relation between deficits and debt on the one hand and interest rates on the other. In each section the intent is to survey rather than to present new theoretical arguments or new empirical evidence.

scholarly journals DEVELOPMENT OF PUBLIC DEBT IN THE SLOVAK REPUBLIC AND THE RISKS OF ITS DEEPENINING

2020 ◽  
pp. 63-70
Author(s):  
Eleonóra Matoušková
Keyword(s):  
Euro Area ◽  
Public Debt ◽  
Social Inequalities ◽  
Global Financial Crisis ◽  
Slovak Republic ◽  
Economic Recession ◽  
Economic Consequences ◽  
Economic Downturn ◽  
Government Deficits ◽  
The Global Financial Crisis

The problem of over-indebtedness began to manifest itself significantly in the Euro area in 2009. Permanent government deficits and the global financial crisis have increased public debt in many, especially the southern Euro area countries, well above the Maastricht criterions. The Slovak Republic is not one of the countries with disproportionaly high debt, but in the era of its autonomy, it had to deal with three periods when the debt was increasing. It was a period of transformation of the economy from centrally managed to market economy after 1993, a period of economic recession due to the global financial and economic crisis and the current coronavirus pandemic, accompanied by a deep economic downturn. The need to tackle a number of inadequate social inequalities is also puttig pressure on the public finances. The aim of this article is to assess development of public debt in Slovakia and to draw attention to the risks of its deepening. Slovakia achieved relatively high levels of economic growth. These periods have not been sufficiently used to reduce public debt, which currently accounts for 48% of GDP. While its share to GDP is falling, the absolute volume of debt is increasing. Economic consequences of the current global coronavirus pandemic will cause further growth in public debt. Slovakia did not take enough opportunity in good times to prepare for the crisis period.

scholarly journals Deficit Financing’ or ‘Deficit-Reduction Financing?’ Debates in Contemporary Economics: Origins, Confusions and Clarity

2019 ◽  
Vol 32 (1) ◽  
pp. 67-78
Author(s):  
Ann Pettifor Ann Pettifor
Keyword(s):  
Fiscal Policy ◽  
Public Debt ◽  
Government Spending ◽  
Government Expenditure ◽  
National Income ◽  
Spare Capacity ◽  
Government Deficits ◽  
Deficit Reduction ◽  
The Government ◽  
Public Sector Deficit

The analysis of government deficits and public debt points to a fundamental error in contemporary economic discussions. It is not possible to assess the stance of fiscal policy from estimates of the public sector deficit. John Maynard Keynes’s macroeconomics and the empirical evidence discussed in this paper indicate that expansionary fiscal policy financed by loan issues will lead to growth in economic activity and employment. In an economy with spare capacity and idle resources, high government expenditure generates income, including tax revenues and thereby reduces the government deficit, and cuts public debt. The main purpose of increased loanfinanced government spending at times of private economic weakness is to increase the nation’s income. Keynes argued that any such government spending was not deficit spending, because he understood the spending as the most sensible means to cut the deficit. Deficit-reduction spending might be a more appropriate definition, because as he argued with Josiah Stamp: “You will never balance the budget through measures which reduce national income” (Keynes, 1978, vol. 21, p. 149).

scholarly journals The effects of public debt on foreign direct investment in South Africa (1983-2013): An empirical analysis

2016 ◽  
Vol 6 (4) ◽  
pp. 448-456
Author(s):  
Mary Oyemowo Oche ◽  
Gisele Mah ◽  
Itumeleng Pleasure Mongale
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Interest Rate ◽  
Public Debt ◽  
Direct Investment ◽  
Negative Relationship ◽  
Government Deficits ◽  
Long Run ◽  
Short Run ◽  
The Government

The political move in South Africa occurred against a setting of high government deficits. Efforts have been made over the years by the government to reduce fiscal deficit and inflation, liberalize the capital account and the financial system as well as reduce tariffs. The main objective of this study, therefore, is to empirically investigate the effect of public debt on foreign direct investment in South African for the period 1983 – 2013. The study employs a Vector Error Correction Model, which provides both the long run and short run relationships among the variables. The long run results indicate that the relationship between public debt and foreign direct investment, as well as interest rate and foreign direct investment, is positive and statistically significant, while there is an insignificant negative relationship between exchange rate and foreign direct investment. Based on the long run results, the study, thus, recommend that the level of public debt and interest rate should increase so that the level of foreign direct investment can increase in the country. However, the policy of depreciation of rand is considered inappropriate for the economy if the desire is to increase the level of foreign direct investment in the country.

The Politics of Open Economies

1997 ◽  
Author(s):  
Alasdair Bowie ◽  
Daniel Unger
Keyword(s):  
Open Economies

Financial Systems and economic Development in the Russian Regions: A Comparative Analysis

2015 ◽  
pp. 94-108 ◽  
Author(s):  
K. Krinichansky
Keyword(s):  
Economic Development ◽  
Comparative Analysis ◽  
Financial Development ◽  
Public Debt ◽  
Fixed Capital ◽  
Russian Regions ◽  
Growth Mechanisms ◽  
Financial Systems ◽  
Debt Market ◽  
Regions Of Russia

The paper identifies and assesses the closeness of the connection between incremental indicators of the financial development in the regions of Russia with the incremental regional GDP and the investment in fixed capital. It is shown that the positioning of the region as an independent participant of public debt market matters: the regional GDP and investment in fixed capital grow more rapidly in the regions which are regularly borrowing on the sub-federal bonds market. The paper also demonstrates that the poorly developed financial system in some regions have caused the imperfection of the growth mechanisms since the economy is not able to use the financial system’s functions.

Is money the creation of the state or the market? (On the “modern monetary theory” as described in the textbook by W. Mitchell, L. R. Wray and M. Watts “Macroeconomics”)

2020 ◽  
pp. 121-134
Author(s):  
S. A. Andryushin
Keyword(s):  
Public Debt ◽  
Scientific Community ◽  
Full Employment ◽  
Term Effect ◽  
Scientific Concept ◽  
Monetary Theory ◽  
Left Wing ◽  
Medium Term ◽  
Short Term ◽  
Stimulation Of

In 2019, a textbook “Macroeconomics” was published in London, on the pages of which the authors presented a new monetary doctrine — Modern Monetary Theory, MMT, — an unorthodox concept based on the postulates of Post-Keynesianism, New Institutionalism, and the theory of Marxism. The attitude to this scientific concept in the scientific community is ambiguous. A smaller part of scientists actively support this doctrine, which is directly related to state monetary and fiscal stimulation of full employment, public debt servicing and economic growth. Others, the majority of economists, on the contrary, strongly criticize MMT, arguing that the new theory hides simple left-wing populism, designed for a temporary and short-term effect. This article considers the origins and the main provisions of MMT, its discussions with the mainstream, criticism of the basic tenets of MMT, and also assesses possible prospects for the development of MMT in the medium term.

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