Eliminating the Federal Budget Deficit Without Recession

F. Gerard Adams

The ANNALS of the American Academy of Political and Social Science, 1988, vol. 500, issue 1, 8-22

Abstract: The federal government's budget deficit of more than $150 billion, some 3 to 4 percent of gross national product, is widely perceived as a serious problem. This article considers policy for wiping out the deficit without recession. Simulations of the Wharton econometric model show that a tax increase would have some slowing effect on the economy but would not cause a recession. Recognition of the possibilities for monetary stimulus, once the deficit is in hand, suggests that the domestic budget deficit can be eliminated without causing an economic slowdown. On the other hand, fixing the domestic budget deficit does not automatically deal with international trade imbalance, which will require other policies and/or international policy coordination in order to be corrected.

Date: 1988
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0002716288500001001 (text/html)

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:sae:anname:v:500:y:1988:i:1:p:8-22

DOI: 10.1177/0002716288500001001

Access Statistics for this article

More articles in The ANNALS of the American Academy of Political and Social Science
Bibliographic data for series maintained by SAGE Publications ().