The Decline of the Budget-Balancing Doctrine or How the Good Guys Finally Lost
I hope it is understood that the title of this paper, part of which was assigned to me and part of which I chose, is not to be taken seriously. The title implies that there was a budget-balancing doctrine in 1929, when my story begins, that this doctrine subsequently declined, and that this decline was a defeat for the good guys. I am not sure that any of these propositions is true. However, I want to discuss them and also the question of how the change of attitude towards budget-balancing, to use the more neutral term rather than decline, happened.
KeywordsMonetary Policy Fiscal Policy Federal Reserve Aggregate Demand Balance Budget
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