Public Debt Resume by Spending Cuts, Austerity Versus Fiscal Expansion

François Facchini ()
Additional contact information
François Facchini: UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This chapter explains why excessive public debt has a negative impact on a country's prosperity and why the most growth-friendly policy is to reduce these deficits through targeted cuts in public spending. It presents the arguments of the theory of expansionary austerity (TEA) and complements them with the Austrian School's theory of capital structure. This focus on the macroeconomics of capital justifies its conclusion. Economic policy does not have the means to match its ambitions. Governments should therefore substitute the government of numbers with a government by rules.

Keywords: Austrian school of Economics; Capital structure; Expansionary austerity; Public debt; Dette publique; Austérité expansive; Structure du capital; Ecole autrichienne d'économie (search for similar items in EconPapers)
Date: 2026-08-02
References: Add references at CitEc
Citations:

Published in Chicot Eboué. The Palgrave Handbook of Public Debt and Policy Mix, Springer Nature Switzerland, pp.65-91, 2026, ⟨10.1007/978-3-032-12508-8_3⟩

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:hal:cesptp:hal-05824872

DOI: 10.1007/978-3-032-12508-8_3

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().