The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Deficit Spending

  • M. J. Artis
Reference work entry


Interest in the economics of deficit finance began to all intents and purposes with the absorption of the economics of the General Theory. Before that, though with a few exceptions, the economic discussion of the public finances was based on the assumption of a fully employed economy and the notion of using deficit finance to stimulate output was accordingly not at issue.

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  1. Barro, R. 1974. Are government bonds net wealth? Journal of Political Economy 82(6): 1095–1117.CrossRefGoogle Scholar
  2. Kregel, J. 1985. Budget deficits, stabilization policy and liquidity preference: Keynes’ post-war proposals. In Keynes’s relevance today, ed. F. Vicarelli. London: Macmillan.Google Scholar
  3. Lerner, A.P. 1943. Functional finance and the federal debt. Social Research 10: 38–51.Google Scholar

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • M. J. Artis
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