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Budget Deficits and Macroeconomic Policy

Discussions of macroeconomic policy often focus on changes in the budget deficit. A low budget deficit is one of the criteria for admission to the EMU. But some combinations of fiscal measures having a given effect on the budget deficit can have damaging effects on the principal macroeconomic objectives such as inflation and full employment, whereas other combinations will not. This is illustrated by using results from simulations for various OECD countries.

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  • "This book argues that making the budget deficit a target of policy can make it harder for governments to work towards all the main macroeconomic objectives - low inflation, high employment and the level of net national wealth (including the current account)."
  • "Discussions of macroeconomic policy often focus on changes in the budget deficit. A low budget deficit is one of the criteria for admission to the EMU. But some combinations of fiscal measures having a given effect on the budget deficit can have damaging effects on the principal macroeconomic objectives such as inflation and full employment, whereas other combinations will not. This is illustrated by using results from simulations for various OECD countries."@en

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  • "Electronic books"@en

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  • "Budget Deficits and Macroeconomic Policy"@en
  • "Budget deficits and macroeconomic policy"
  • "Budget deficits and macroeconomic policy"@en

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