Public Debt and Aggregate Demand: Some Unconventional Analytics
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This chapter explores some basic questions about the effects on the economic system of financing public expenditure by issuing debt. It develops within a theoretical framework differing from that which is currently predominant both in pure theory and in applications to specific problems such as those addressed here. In particular, the approach in this chapter rests on two basic and closely related premises.
KeywordsFiscal Policy Public Expenditure Private Investment Public Debt Public Spending
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