Abstract
The aim of this paper is two-fold: first to deal with some conceptual issues in determining the appropriate measure of the public sector1) balance and second, but much less fully, to consider in what circumstances an increased deficit, appropriately defined, would be likely to lead to a fall rather than a rise in aggregate effective demand.
The views expressed represent those of the author and not those of his employer. He is particularly indebted to Christopher Allsopp and Peter Stanyer for allowing him to draw on some of their ideas and statistical calculations.
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© 1984 Martinus Nijhoff Publishers, Dordrecht
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Threadgold, A. (1984). Large and Persisting Public Sector Deficits: Short-Term Demand Thrust and Long-Term Policy Implications. In: Fair, D.E., de Juvigny, F.L. (eds) Government Policies and the Working of Financial Systems in Industrialized Countries. Financial and Monetary Policy Studies, vol 9. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-6204-0_7
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DOI: https://doi.org/10.1007/978-94-009-6204-0_7
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