Do budget deficits ‘crowd out’ private investment?

The present worldwide recession is proving unusually stubborn. Large reflationary packages, involving cuts in taxation and higher public spending, have been announced in several leading Western economies, but the recovery so far has been fitful and uncertain. Accompanying the sluggishness of activit...

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Autores:
Tipo de recurso:
Part of book
Fecha de publicación:
2007
Institución:
Universidad de Bogotá Jorge Tadeo Lozano
Repositorio:
Expeditio: repositorio UTadeo
Idioma:
eng
OAI Identifier:
oai:expeditiorepositorio.utadeo.edu.co:20.500.12010/15423
Acceso en línea:
http://hdl.handle.net/20.500.12010/15423
Palabra clave:
Budget deficits
Private investment
Economía -- Teorías
Presupuesto
Inversiones
Rights
License
Abierto (Texto Completo)
Description
Summary:The present worldwide recession is proving unusually stubborn. Large reflationary packages, involving cuts in taxation and higher public spending, have been announced in several leading Western economies, but the recovery so far has been fitful and uncertain. Accompanying the sluggishness of activity have been large public sector financial deficits, particularly in the United Kingdom, the United States and West Germany. These deficits were largely caused by the recession (as it has cut tax receipts), but at the same time they are seen as serving the benign function of combating the weakness of spending (because the deficits represent a demand injection into the economy).