The Balanced Budget

Burkhead, Jesse

doi:10.2307/1884446

Cited by 16 publications

(8 citation statements)

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“…26 Keynes left it to his followers to address this challenge. 27 And in the 1940s, the most prominent early Keynesians, Alvin Hansen and Abba Lerner, took up the task of rethinking the role of government borrowing within capitalist societies. For Hansen and Lerner, rethinking the public debt also meant integrating the class politics of public debt ownership, which were central to Adams's analysis, into their own aggregate macroeconomic frameworks.…”

Section: The Keynesian Revolutionmentioning

confidence: 99%

“…In the 1950s and 1960s, national bond drives headed up by NASA, as well as Hollywood and Broadway celebrities, continued to play on patriotic sentiments, urging Americans to underwrite the might of the federal government by investing in savings bonds. 27 Most personal encounters with the public debt are likely to come from investment in savings bonds, at least for older generations that were exposed to these high-profile campaigns. So it is little wonder that the image of a widely held public debt comes from its association with mass investment in savings bonds.…”

Section: The Death Of Savings Bondsmentioning

confidence: 99%

“…For Streeck, as capitalism deepens, wealth and income become increasingly concentrated in the hands of the propertied classes, which in turn augment their power to resist the state's attempt to extract resources from them. 27 Thus the main factor that explains the emergence of the debt state over the past four decades has been the successful tax resistance waged on the part of increasingly powerful elites. Tax stagnation within this framework proceeds hand in hand with declining tax progressivity.…”

Section: Fiscal Conflict and The Debt Statementioning

confidence: 99%

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Public Debt, Inequality, and Power: The Making of a Modern Debt State

Hager

2016

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Section: The Keynesian Revolutionmentioning

confidence: 99%

Section: The Death Of Savings Bondsmentioning

confidence: 99%

Section: Fiscal Conflict and The Debt Statementioning

confidence: 99%

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Public Debt, Inequality, and Power: The Making of a Modern Debt State

Hager

2016

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“…Now, turning to some empirical evidence, it was concluded in a study by Edwards (1969: 290) that, for the 1949-1967 period, the deficit hypothesis-that budget deficits are a cause of inflation-is less accurate than coin flipping. It was observed by Burkhead (1954) that during the period July I, 1930 to June 30, 1953, budget deficits moved in the same direction as the price level in only eight of the 23 fiscal years. Comparing annual rates of change in the price level with the same year or the previous year to percentage changes in real federal purchases, Bechter (1975: 9) concludes, "the rate of inflation has just as often as not gone in a direction opposite to that of real federal spending on goods and services."…”

Section: Empirical Evidencementioning

confidence: 99%

Budget Deficits: A Major Cause of Inflation?

Sharp

Flenniken

1978

Public Finance Quarterly

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This paper examines the proposition that budget deficits are a major cause of inflation. Economic theory does not unconditionally support the proposition, and available empirical evidence does not support the proposition. During periods of expansion, 1949–1973, the increases in the money supply that can be directly traced to budget deficits are often a contributing but not necessarily a major cause of inflations. On the other hand, the fiscal effects of the budget, because of the automatic growth in federal receipts, are usually checking the growth in both prices and real output. Based on the discussion and data presented in this paper, the deficit hypothesis cannot be accepted. Inflations are too complicated phenomena to be explained by a single variable such as budget deficits.

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“…For instance, as Burkhead (1954) notes, Marshall's Principles devote no attention to Say (1853), p. 483. The W orks and Correspondence of David Ricardo, P. Sraffa, ed., (1952-73), voi.…”

Section: Introductionmentioning

confidence: 99%

EMU Fiscal Rules: A New Answer to an Old Question?

Balassone

Franco

2001

SSRN Journal

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A b s tr a c t EMU fiscal rules aim at ensuring sound fiscal policies in EU Member States while allowing sufficient margins for stabilisation policy. The Treaty of Maastricht and the Stability and Growth Pact introduced a detailed framework of rules, surveillance procedures and sanctions that are tighter than those generally applying in federal countries. In this paper we try to assess to what extent the issue facing the founders of EMU was a new one in the field of public finance and to what extent the solution chosen can be regarded as innovative. To this end, we review the literature on budgetary rules from its very beginning to the years immediately before the Treaty of Maastricht. We consider the arguments brought forward to justify EMU fiscal rules and the novel feature of the problem faced at the EU level, represented by the interaction between its multinational nature and the lack of a political authority of federal rank. The solutions chosen, while drawing heavily on ideas that were central in the debate on fiscal rules, reflect this new aspect of the problem. The highly decentralised setting of fiscal policy in EMU gave prominence to moral hazard issues; it is probably at the roots of the rejection of both the dual budget approach and the distinction between ordinary and extraordinary finance; it motivated the adoption of a detailed multilateral surveillance procedure and the introduction of a predetermined limit for the annual deficit in a framework that envisages the targeting of a balanced budget over the cycle.

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The Balanced Budget

Cited by 16 publications

References 0 publications

Public Debt, Inequality, and Power: The Making of a Modern Debt State

Public Debt, Inequality, and Power: The Making of a Modern Debt State

Budget Deficits: A Major Cause of Inflation?

EMU Fiscal Rules: A New Answer to an Old Question?

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