Abstract
My message in this chapter is that deficits can be good for you. In fact, deficits can be too large, and they can be too small. But we cannot tell which until we know how to measure them. And most people talking about deficits really have no notion how they are measured. The fact is that the way we do measure them has very uncertain economic relevance, and, in particular, the US federal budget and the deficit are calculated in a way which would send chills up the spines of almost any sensible private business accountant.
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References
Eisner, R., ‘The Total Incomes System of Accounts’, Survey of Current Business, vol. 65 (i) (1985) pp. 24–48.
Eisner, R., How Real is the Federal Deficit? (New York: The Free Press, 1986).
Eisner, R., ‘Extended Accounts for National Income and Product’, Journal of Economic Literature, vol. 26 (2) (1988) pp. 1611–84.
Eisner, R., The Total Incomes System of Accounts (Chicago: The University of Chicago Press, 1989).
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© 1992 Dimitri B. Papadimitriou
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Eisner, R. (1992). The Twin Deficits. In: Profits, Deficits and Instability. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11786-4_13
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DOI: https://doi.org/10.1007/978-1-349-11786-4_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11788-8
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