EconPapers    
Economics at your fingertips  
 

Prudence or Profligacy: Deficits, Debt, and Fiscal Consolidation

Andrea Boltho and Andrew Glyn

Oxford Review of Economic Policy, 2006, vol. 22, issue 3, 411-425

Abstract: Over the last quarter century, public finances have been under pressure in most OECD countries as deficits and debts rose under the pressure of relatively slow growth and high interest rates. This, in turn, has affected the welfare state, since efforts at containing deficits have often been concentrated on public expenditure. Much of the literature argues that this is desirable, since curbing deficits via tax increases seldom succeeds. A medium-term survey of OECD country experience suggests a less clear-cut conclusion. In a number of countries which were able to curb debt/GDP ratios, the bulk of the adjustment did, indeed, come from spending cuts (but was, also, in some cases helped by rapid growth and/or currency depreciation). In several, however, tax increases also appear to have succeeded in reducing deficits and debt. Copyright 2006, Oxford University Press.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxford:v:22:y:2006:i:3:p:411-425

Access Statistics for this article

Oxford Review of Economic Policy is currently edited by C. Allsopp

More articles in Oxford Review of Economic Policy from Oxford University Press
Bibliographic data for series maintained by Oxford University Press () and Christopher F. Baum ().

 
Page updated 2022-01-17
Handle: RePEc:oup:oxford:v:22:y:2006:i:3:p:411-425