The Budget Deficit and Economic Growth Theoretical Controversian

Danijela Despotovic, Dejan Velickovic and Jelena Ristic

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2011, vol. 57, issue 2

Abstract: In a study development functions fiscal policy central question refers to the treatment possible effect pushing investment, or possible action on the economic growth. According to this issue is radically different views leading economic school. However, it can be concluded that almost all thoughts go to the conclusion that a large budget deficit Act on istiskivanje private capital with financial markets. In theory ideally suited, it means that the categories budget deficit and economic growth long-term are in a negative korelativnom relationship.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:288748

DOI: 10.22004/ag.econ.288748

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