Debts and Deficits in Alternative Macroeconomic Models

Part of the Central Issues in Contemporary Economic Theory and Policy book series (CICETP)


Ever since Keynes challenged the classical automaticity approach to macroeconomics, the economics profession has been engaged in a prolonged debate over the appropriate roles of monetary, fiscal, debt and exchange rate policies in economic management. In the two decades following the publication of the General Theory, Keynesian views were predominant in macroeconomic theory and economic policy. Classical views, however, were sustained by the abortive Keynesian prediction of a post-war depression. Control of inflation became a major objective of macroeconomic policy.


Monetary Policy Fiscal Policy Money Supply Government Spending Public Debt 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. [1]
    Adams H.C.: Public Debts London, 1888.Google Scholar
  2. [2]
    Arrow K.J. — Boskin M.J.: The Economics of Public Debt, Hong Kong, McMillan, 1988.CrossRefGoogle Scholar
  3. [3]
    Atkinson A.B. — Stiglitz J.E.: Lectures on Public Economics, New York, McGraw-Hill, 1980.Google Scholar
  4. [4]
    Bailey Martin J.: «The Welfare Cost of Inflationary Finance» The Journal of Political Economy, n. 64, 1956.Google Scholar
  5. [5]
    Bailey Martin J.: National Income and the Price Level, New York, McGraw-Hill, 1962.Google Scholar
  6. [6]
    Barro R.J.: «Are Government Bonds Net Wealth?» Journal of Political Economy, n. 82, 1974, pp. 1095–117.Google Scholar
  7. [7]
    Barro R.J.: «On the Determination of the Public Debt», Journal of Political Economy n. 87, 1979, pp. 940–71.Google Scholar
  8. [8]
    Barro R.J. (Ed.): Modern Business Cycles Theory, Cambridge (Mass.), Harvard University Press, 1989.Google Scholar
  9. [9]
    Barro R.J. (Ed.): The Neoclassical Approach to Fiscal Policy 1989, in BARRO [8], pp. 178–235.Google Scholar
  10. [10]
    Barro R.J. (Ed.): «The Ricardian Approach to Budget Deficits» Journal of Economic Perspectives, n. 3, 1989, pp. 37–54.CrossRefGoogle Scholar
  11. [11]
    Bastable C.F.: Public Finance London, 1903.Google Scholar
  12. [12]
    Blanchard O.J.: «Debts, Deficits and Finite Horizons», Journal of Political Economy n. 93, 1985, pp. 223–47.CrossRefGoogle Scholar
  13. [13]
    Blinder A.S. — Solaw R.M.: «Does Fiscal Policy Matter?», Journal of Public Economics, n. 2, 1973, pp. 319–37.Google Scholar
  14. [14]
    Blinder A.S.: Comments on Franco Modigliani’s ‘Measuring the Contribution of Intergenerational Transfers to Total Wealth’ in KESSL.ER — MASSON (eds.) [40], pp. 68–76.Google Scholar
  15. [15]
    Bosiü N Michael J.: «Taxation, Saving and the Rate of Interest» Journal of Political Economy, vol. 86; n. 2, 1978, pp. 93–927.Google Scholar
  16. [16]
    Brenner Reuven: Debt, Deficits and Government Expenditures: Theories, Facts and Artifacts 1989, in McCallum J. — Mundell R. [62].Google Scholar
  17. [17]
    Brewer John: The Sinews of Power: War, Money and the English State, 1688–1783, New York, Knopf, 1989.Google Scholar
  18. [18]
    Buchanan James M.: Public Principles of Public Debt, Homewood ( Ill. ), Irwin, 1958.Google Scholar
  19. [19]
    Buchanan James M.: Fiscal Theory and Political Economy, Durham, North Carolina Press, 1960.Google Scholar
  20. [20]
    Buchanan James M. «Barro on the Ricardian Equivalence Theorem» Journal of Political Economy, n. 84, 1976, pp. 337–42.Google Scholar
  21. [21]
    Cantillon Richard: On the Nature of Commerce in General 1732, in MONROE [71], p. 271.Google Scholar
  22. [22]
    Collery Arnold: «A Note on the Saving-Wealth Relation and the Rate of Interest», Journal of Political Economy n. 68, 1960, pp. 509–10.CrossRefGoogle Scholar
  23. [23]
    Dooley Peter C.: «Ricardo and Keynes on War Finance», Atlantic Economic Journal vol. XVII, n. 3, 1989, pp. 21–33.Google Scholar
  24. [24]
    Diamond Peter A.: «National Debt in a Neo-Classical Growth Model», American Economic Review n. 60, 1965, pp. 1126–50.Google Scholar
  25. [25]
    Feldstein Martin S.: «Perceived Wealth in Bonds and Social Security: A Comment», Journal of Political Economy n. 84, 1976, pp. 331–6.Google Scholar
  26. [26]
    Feldstein Martin S. «Government Deficits and Aggregate Demand», Journal of Monetary Economics, n. 9, 1982, pp. 1–20.CrossRefGoogle Scholar
  27. [27]
    Flavin M.A.: «The Adjustment of Consumption to Changing Expectation of Future Income», Journal of Political Economy vol. 89; n. 5, 1981, pp. 1020–37.Google Scholar
  28. [28]
    Friedman Milton: «The Role of Monetary Policy», American Economic Review vol. 58, mar. 1968, pp. 1–17.Google Scholar
  29. [29]
    Haberler Gotrfried: «The Pigou Effect Once More», Journal of Political Economy n. 60, 1952, pp. 24–246.Google Scholar
  30. [30]
    Hall Robert E.: «Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence», Journal of Political Economy vol. 86, n. 6, 1978, pp. 971–87.CrossRefGoogle Scholar
  31. [31]
    Hall Robert E.: Consumption 1989, in BARRO [8], ch. 4.Google Scholar
  32. [32]
    Hgeland Hugo: «The Multiplier Theory», Lund Social Science Studies n. 9, 1954.Google Scholar
  33. [33]
    Hill C.P.: British Economic and Social History 1700–1982, London, Edward Arnold, 1986.Google Scholar
  34. [34]
    Horwich George: «Real Assets and the Theory of Interest», Journal of Political Economy n. 70, 1962, pp. 157–69.Google Scholar
  35. [35]
    Hutcheson Archibald: A Collection of Treatises Relating to the Public Debts and Funds, etc. London, Hutcheson, 1721.Google Scholar
  36. [36]
    Hutcheson T.W.: Economics and Economic Policy in Britain: 1946–1966, London, Allen and Unwin, 1968.Google Scholar
  37. [37]
    Ihow Toshihiro: Debt Burden and Intergeneration Equity in ARROW-BOSIuN [2], pp. 149–91.Google Scholar
  38. [38]
    Johannsen Nicholas A.L.J.: A Neglected Point in Connection With Crisis, New York, The Bankers Publishing Company, 1908.Google Scholar
  39. [39]
    Johnson Harry G.: «Monetary Theory and Policy», American Economic Review n. 52, 1962, pp. 335–84.Google Scholar
  40. [40]
    Kessler DenisMasson Andre (Eds.): Modelling the Accumulation and Distribution of Wealth, Oxford, Oxford University Press, 1988.Google Scholar
  41. [41]
    Kessler DenisMasson Andre: «Bequest and Wealth Accumulation: Are Some Pieces of the Puzzle Missing?», Journal of Economic Perspectives n. 3, estate 1989, pp. 141–51.Google Scholar
  42. [42]
    Keynes John Maynard: «The Question of High Wages», Political Quarterly January 1930.Google Scholar
  43. [43]
    Keynes John Maynard: The General Theory of Employment, Interest and Money, London, MacMillan, 1936.Google Scholar
  44. [44]
    Keynes John Maynard: «The Income and Fiscal Potential of Great Britain», Economic Journal December 1939.Google Scholar
  45. [45]
    Keynes John Maynard: How to Pay for the War London MacMillan, 1940.Google Scholar
  46. [46]
    Keynes John Maynard: «Collected Papers», vol. XXII, Activities 1939–45: Internal War Finance, London, MacMillan, 1978.Google Scholar
  47. [47]
    Keynes John MaynardHenderson Hubert D.: Can Lloyd George Do It?, London, The Nation and Athenaeum, 1929.Google Scholar
  48. [48]
    Kindleberger Charles P.: The World in Depression, 1929–39, Berkeley and Los Angeles, The University of California Press, 1986.Google Scholar
  49. [49]
    Kotukoff L.J. — Summers L.H.: «The Role of Intergenerational Transfers in Aggregate Capital Accumulation», Journal of Political Economy n. 89, 1981, pp. 706–32.Google Scholar
  50. [50]
    Kotukoff L.J.: «Intergenerational Transfers and Savings» Journal of Economic Perspectives, n. 2, 1988, pp. 41–58.Google Scholar
  51. [51]
    Lane Frederic C.: Venice: A Maritime Republic, Baltimore and London, Johns Hopkins University Press, 1973.Google Scholar
  52. [52]
    Lekachman Robert: Keynes’ General Theory: Reports of Three Decades, New York, St Martin’s Press, 1964.Google Scholar
  53. [53]
    Lekachman Robert: The Age of Keynes, 1967.Google Scholar
  54. [54]
    Lerner Abba P.: Keynesian Economics in the Sixties, in LEKACHMAN [52], pp. 222–34.Google Scholar
  55. [55]
    Lucas Robert E. Jr.: «Expectations and the Neutrality of Money», Journal of Economic Theory, n. 4, 1972, pp. 103–24.CrossRefGoogle Scholar
  56. [56]
    Lucas Robert E. Jr.: «International Evidence on Output-Inflation Tradeoffs» American Economic Review, n. 63, 1973, pp. 326–34.Google Scholar
  57. [57]
    Lucas Robert E. Jr.: «Methods and Problems in Business Cycle Theory» Journal of Money, Credit and Banking, n. 12, 1980, pp. 696–715.CrossRefGoogle Scholar
  58. [58]
    Lucas Robert E. JR. «On the Mechanics of Economic Development» Journal of Monetary Economics, n. 22, 1988, pp. 3–42.Google Scholar
  59. [59]
    Maniuw N.G.: «Government Purchases and Real Interest Rates» Journal of Political Economy, n. 95, 1987, pp. 407–19.CrossRefGoogle Scholar
  60. [60]
    Lucas Robert E. Jr.: «Real Business Cycles: A New Keynesian Perspective» Journal of Economic Perspectives, vol. 3, n. 3, 1989, pp. 79–90.Google Scholar
  61. [61]
    Mccallum Bennett: «Are Bond-Financed Deficits Inflationary? A Ricardian Analysis», Journal of Political Economy n. 92, 1984, pp. 123–35.CrossRefGoogle Scholar
  62. [62]
    Mccallum JohnMundell Robert: Global Disequilibrium, December 1989 Rivista di Politica Economica.Google Scholar
  63. [63]
    Meade J.E.: «Mr. Lerner on the Economics of Control», Economic Journal, n. 55, 1945, pp. 47–70.CrossRefGoogle Scholar
  64. [64]
    Melon Jean Francois: Essai sur le Commerce 1736.Google Scholar
  65. [65]
    Metzler Lloyd A.: «Wealth, Saving and the Rate of Interest» Journal of Political Economy, n. 59, 1951, pp. 93–116.Google Scholar
  66. [66]
    Metzler Lloyd A.: Collected Economic Papers, Cambridge ( Mass. ), Harvard University Press, 1973.Google Scholar
  67. [67]
    Metzler Lloyd A.: «A Reply» Journal of Political Economy, n. 60, 1952, pp. 249–52.Google Scholar
  68. [68]
    Mill John Stuart: Principles of Political Economy London, Ashley, 1848, Longmans, Green and Co., 1909, 2 nd ed.Google Scholar
  69. [69]
    Modigliani Franco: «Long-run Implications of Alternative Fiscal Policies and the Burden of the National Debt», Economic Journal, n. 71, 1961, pp. 730–55.CrossRefGoogle Scholar
  70. [70]
    Modigliani Franco: «The Role of Inter-generational Transfers and Life Cycle Saving in the Accumulation of Wealth», Journal of Economic Perspectives n. 2, 1988, pp. 15–40.Google Scholar
  71. [71]
    Monroe Arthur: Early Economic Thought, Cambridge, Harvard University Press, 1924.Google Scholar
  72. [72]
    Mundell Robert A.: «The Public Debt, Corporate Income Taxes and the Rate of Interest», Journal of Political Economy n. 68, 1960, pp. 622–6, reprinted (with an addition) in Mundell [84].Google Scholar
  73. [73]
    Mundell Robert A.: «The Monetary Dynamics of International Adjustment Under Fixed and Flexible Exchange Rates», Quarterly Journal of Economics n. 74, 1960, pp. 227–57, reprinted in Mundell [83].Google Scholar
  74. [74]
    Mundell Robert A.: «The International Disequilibrium System», Kyklos n. 14, 1961, pp. 154–72, reprinted in Mundell [83], pp. 217–39.CrossRefGoogle Scholar
  75. [75]
    Mundell Robert A.: «Flexible Exchange Rates and Employment Policy», Canadian Journal of Economics and Political Science n. 27, 1961, pp. 509–17, reprinted in Mundell [83] Mundell Robert A., pp. 24–49.Google Scholar
  76. [76]
    Mundell Robert A.: «The Appropriate Use of Monetary and Fiscal Policy for Internal and External Balance», International Monetary Fund Staff Papers 1962, reprinted in Mundell [83].Google Scholar
  77. [77]
    Mundell Robert A.: «Inflation and Real Interest», Journal of Political Economy n. 71, 1963, pp. 280–3, reprinted in Mundell [84], ch. 2.Google Scholar
  78. [78]
    Mundell Robert A.: «Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rates», Canadian Journal of Economics and Political Science n. 29, 1963, pp. 475–85, reprinted in Mundell [83], pp. 250–62.CrossRefGoogle Scholar
  79. [79]
    Mundell Robert A.: «Reply: Capital Mobility and Size», Canadian Journal of Economics and Political Science n. 30, 1964, pp. 421–31, reprinted in Mundell [83], pp. 262–71.Google Scholar
  80. [80]
    Mundell Robert A.: «Growth, Stability and Inflationary Finance», Journal of Political Economy n. 73, 1965, pp. 97–109.CrossRefGoogle Scholar
  81. [81]
    Mundell Robert A.: «An Exposition of Some Subtleties in the Keynesian System», Weltwirtschaftliches Archiv n. 2, August 1965.Google Scholar
  82. [82]
    Mundell Robert A.: «A Fallacy in the Interpretation of Macroeconomic Equilibrium», Journal of Political Economy n. 73, February 1965, pp. 61–6, reprinted in Mundell [84] Mundell Robert A., [85], cap. 3.Google Scholar
  83. [83]
    Mundell Robert A.: International Economics, New York, MacMillan, 1968.Google Scholar
  84. [84]
    Mundell Robert A.: Monetary Theory: Inflation, Interest and Growth in the World Economy, Pacific Palisades, London, Goodyear, 1971.Google Scholar
  85. [85]
    Mundell Robert A.: «The Dollar and the Policy Mix», Essays in International Finance, n. 85, May 1971, Princeton (NJ ), Princeton University Press.Google Scholar
  86. [86]
    Mundell Robert A.: «The International Monetary Dilemma», The Interamerican Institute of Capital Markets September 1979, pp. 1–19, Caracas, Venezuela.Google Scholar
  87. [87]
    Mundell Robert A.: «Trade Balance Patterns as Global General Equilibrium: The Seventeenth Approach to the Belance of Payments», Rivista di Politica Economica June 1989.Google Scholar
  88. [88]
    Mundell Robert A.: «The Dollar and the Policy Mix», Rivista di Politica Economica December 1989, Forthcoming in MMccallumMundell, 1990.Google Scholar
  89. [89]
    Mundell Robert A.: The Global Adjustment System in MCCALLUM — Mundell, 1990.Google Scholar
  90. [90]
    Musgrave R.A.: Public Debt and Intergeneration Equity in ARROW — BOSKIN, [2], pp. 133–46.Google Scholar
  91. [91]
    Muth Richard F.: «Optimal Properties of Exponentially Weighted Forecasts», Journal of the American Statistical Association n. 55, 1960, pp. 299–306.CrossRefGoogle Scholar
  92. [92]
    Muth Richard F.: «Rational Expectations and the Theory of Price Movements», Econometrica n. 29, 1961, pp. 315–35.Google Scholar
  93. [93]
    Neisser Hans: «Is the Public Debt a Burden on Future Generations?», Social Research 1961.Google Scholar
  94. [94]
    Palgrave R.H.: «Inglis», Dictionary of Political Economy, London, MacMillan, 1926.Google Scholar
  95. [95]
    Patinkin Don: Money, Interest and Prices. Evanston, Row, Peterson, 1956.Google Scholar
  96. [96]
    Patinkin Don: Keynes’ Monetary Thought, Durham, North Carolina, Duke University Press, 1976.Google Scholar
  97. [97]
    Patinkin Don: «Keynes and the Multiplier» Manchester School of Economic and Social Studies, September 1978, pp. 209–23.Google Scholar
  98. [98]
    Phelps Edmund S. — Velupillai Kumaraswamy: Optimum Fiscal Policy when Monetary Policy is Bound by a Rule: Ramsay Redux in ARROW — BosKIN [2], pp. 116–33.Google Scholar
  99. [99]
    Picot.: A.C.: The Economics of Welfare, London, MacMillan, 1920.Google Scholar
  100. [100]
    Pigou A.C.: Employment and Equilibrium, London, McMillan, 1941.Google Scholar
  101. [101]
    Pigou A.C. «The Classical Stationary State» The Economic Journal, December 1943.Google Scholar
  102. [102]
    Plosser Charles I.: «Understanding Real Business Cycles» Journal of Economic Perspectives, vol. 3, n. 3, 1989, pp. 51–77.Google Scholar
  103. [103]
    Ramsay Frank: «A Mathematical Theory of Saving», Economic Journal n. 38, December 1928, pp. 543–9.Google Scholar
  104. [104]
    Ricardo David: Principles of Political Economy, vol. I, 1817, in SRAFPA (ed.), Cambridge, Cambridge University Press, 1957.Google Scholar
  105. [105]
    Ricardo David: Funding System, 1818, in SRAFPA (ed.), vol. IV, Cambridge, Cambridge University Press, 1962.Google Scholar
  106. [106]
    Robbins Lionel: «Schumpeter on the History of Economic Analysis» Quarterly Journal of Economics, n. 69, 1955.Google Scholar
  107. [107]
    Rotwein Eugene: David Hume: Writings on Economics, Madison, University of Wisconsin Press, 1955.Google Scholar
  108. [108]
    Samuelson Paul A.: «An Exact Consumption-Loan Model of Interest With or Without the Social Contrivance of Money», Journal of Political Economy n. 66, 1958, pp. 467–82.Google Scholar
  109. [109]
    Samuelson Paul A.: A Brief Survey of Post-Keynesian Developments 1963, in LEKACHMAN [52], pp. 331–47.Google Scholar
  110. [110]
    Samuelson Paul A.: The General Theory. A Brief Survey of Post-Keynesian Development, in LEKACHMAN [52], pp. 331–46.Google Scholar
  111. [111]
    Sargent Thomas J.: «Rational Expectations, Econometric Exogeneity, and Consumption», Journal of Political Economy vol. 84, n. 4, 1978, pp. 673–700.Google Scholar
  112. [112]
    Samuelson Paul A.: Dynamic Macroeconomic Theory, Cambridge, Harvard University Press, 1987.Google Scholar
  113. [113]
    Say Jean-Baptiste: Traité d’Economie Politique 2 vols, 1803.Google Scholar
  114. [114]
    Scott: Economic Journal, September 1918.Google Scholar
  115. [115]
    Schumpeter Joseph A.: History of Economic Analysis, New York, Oxford University Press, 1954.Google Scholar
  116. [116]
    Seligman Benjamin: Annals of the American Academy January 1918.Google Scholar
  117. [117]
    Shoup Carl S.: «Debt Financing and Future Generations» The Economic Journal, n. 72, 1962, pp. 887–98.Google Scholar
  118. [118]
    Shuker Stephen A.: American «Reparations» to Germany, 1919–33, Princeton, International Finance Section, 1988.Google Scholar
  119. [119]
    Srigurz Joseph E.: On the Relevance or Irrelevance of Public Financial Policy in ARROW — BosKlx [2], pp. 41–76.Google Scholar
  120. [120]
    Viner Jacob: «Who Paid for the War?», Journal of Political Economy, n. 28, 1920, pp. 46–76.Google Scholar
  121. [121]
    Viner Jacob: Studies in the Theory of International Trade, London, Allen and Unwin, 1937.Google Scholar
  122. [122]
    Viner Jacob: Comment on My 1936 Review of Keynes’ General Theory 1963, in Lekachman [52], pp. 265–6.Google Scholar
  123. [123]
    Visaggio Mauro: «On Ricardo’ Public Debt Theory», Economic Notes n. 2, 1989, pp. 149–66.Google Scholar
  124. [124]
    Wannisiu Jude: «It’s Time to Cut Taxes», The Wall Street Journal December 1974, p. 18.Google Scholar
  125. [125]
    Wannisiu Jude: «The Mundell-Laffer Hypothesis», The Public Interest n. 39, spring 1975, pp. 31–52.Google Scholar
  126. [126]
    Wicicer Elmus R.: Federal Reserve Monetary Policy: 1917–1933, New York, Random House, 1966.Google Scholar
  127. [127]
    Wright David Mccord: «Professor Metzler and the Rate of Interest», Journal of Political Economy, n. 60, 1952, pp. 247–9.CrossRefGoogle Scholar
  128. [128]
    Young John Parke: European Currency and Finance: Commission of Gold and Silver Inquiry. United States Senate, Washington, Government Printing Office, 1925.Google Scholar

Copyright information

© SIPI Srl. Rivista di Politica Economica 1993

Authors and Affiliations

  1. 1.Columbia UniversityUSA

Personalised recommendations