by Summary:
The balanced budget paradox is probably one of the most devastating phenomena haunting our economies. The harder politicians — usually on the advice of establishment economists — try to achieve balanced budgets for the public sector, the less likely they are to succeed in their endeavour. And the more the citizens have to pay for the concomitant austerity policies these wrong-headed politicians and economists recommend as “the sole solution.” There are three budget views.1. Balanced budget in every fiscal year. (Sound finance, debt phobes and deficit hawks)2. Budget balanced over the cycle. (John Maynard Keynes, many Keynesians, deficit doves)3. Budget determined dynamically by economic need and opportunity rather than financial rules. (Abba Lerner, functional finance, MMT, deficit
Topics:
Mike Norman considers the following as important: Abba Lerner, austerity, john maynard keynes, MMT, Neo-Ricardianism, Robert Barro, Stephanie Kelton, William Vickrey
This could be interesting, too:
The balanced budget paradox is probably one of the most devastating phenomena haunting our economies. The harder politicians — usually on the advice of establishment economists — try to achieve balanced budgets for the public sector, the less likely they are to succeed in their endeavour. And the more the citizens have to pay for the concomitant austerity policies these wrong-headed politicians and economists recommend as “the sole solution.” There are three budget views.1. Balanced budget in every fiscal year. (Sound finance, debt phobes and deficit hawks)2. Budget balanced over the cycle. (John Maynard Keynes, many Keynesians, deficit doves)3. Budget determined dynamically by economic need and opportunity rather than financial rules. (Abba Lerner, functional finance, MMT, deficit
Topics:
Mike Norman considers the following as important: Abba Lerner, austerity, john maynard keynes, MMT, Neo-Ricardianism, Robert Barro, Stephanie Kelton, William Vickrey
This could be interesting, too:
Steve Roth writes John Maynard Keynes Doesn’t Seem to Know What He Means by the Word “Spending”
Steve Roth writes MMT and the Wealth of Nations, Revisited
Matias Vernengo writes On central bank independence, and Brazilian monetary policy
Frances Coppola writes When populism fails
The balanced budget paradox is probably one of the most devastating phenomena haunting our economies. The harder politicians — usually on the advice of establishment economists — try to achieve balanced budgets for the public sector, the less likely they are to succeed in their endeavour. And the more the citizens have to pay for the concomitant austerity policies these wrong-headed politicians and economists recommend as “the sole solution.”There are three budget views.
1. Balanced budget in every fiscal year. (Sound finance, debt phobes and deficit hawks)
2. Budget balanced over the cycle. (John Maynard Keynes, many Keynesians, deficit doves)
3. Budget determined dynamically by economic need and opportunity rather than financial rules. (Abba Lerner, functional finance, MMT, deficit owls)
Lars P. Syll’s Blog
Rethinking public budget
Lars P. Syll | Professor, Malmo University