Thursday, 2 August 2012

Paul Samuelson on fiscal deficits

"In the early stages of the Keynesian revolution, macroeconomists emphasised fiscal policy as the most powerful and balanced remedy for demand management. Gradually, shortcomings of fiscal policy became apparent. The shortcomings stem from timing, politics, macroeconomic theory, and the deficit itself".

Paul Samuelson, Nobel Laureate

Source: Gwartney, Stroup, Sobel, Economics - Private and Public Choice, 9th ed, p. 293

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