The Economics of Public Spending : Debts, Deficits and Economic Performance - Hassan Bougrine

The Economics of Public Spending : Debts, Deficits and Economic Performance

By: Hassan Bougrine (Editor)

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This text argues that in many jurisdictions free market advocates have resorted to pubic sector downsizing and privatization as a means of alleviating problems of unemployment and slow economic growth, and that, as a consequence, the strategy of reducing public deficits, balancing budgets and achieving surpluses has become widely accepted as the only road to prosperity. The volume demonstrates that the strategy of public sector downsizing is based on a misleading conception of public finance. It seeks to dispel several myths about public deficits and debts, offering alternative approaches to fiscal and monetary policies. The contributors argue that the public sector is crucial for economic growth, that budget deficits are required for improving the performance of the private sector and that there is a real need for an economic agenda based on public deficits and low stable real interest rates in order to achieve full employment with high wages, more generous social programmes and sustainable inflation.

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