ON THE INEFFECTIVENESS OF FISCAL POLICY AS AN INSTRUMENT OF MACROECONOMIC POLICY
"Spending depends on the quantity of money. If an increase in the budget deficit is financed by sales of government debt to non-banks, the quantity of money is unchanged and public borrowing 'crowds out' private spending. But - if the government finances its deficit (or buybacks of existing debt) from the banks - the quantity of money, and hence spending and national income increase." Copyright (c) 2009 The Author. Journal compilation (c) Institute of Economic Affairs 2009.
Year of publication: |
2009
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Authors: | Congdon, Tim |
Published in: |
Economic Affairs. - Wiley Blackwell. - Vol. 29.2009, 1, p. 80-82
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Publisher: |
Wiley Blackwell |
Saved in:
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