Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
No. Do you think the public sector should never be balanced or in surplus?
by IM on Sun Aug 14th, 2011 at 01:18:41 PM EST
[ Parent ]
Long-run? Only if your economy is on a stagnant or negative nominal growth path. In a nominally growing economy, the sovereign should run moderate cycle-averaged deficits to accommodate the private sector's need for sovereign securities.

Short-run? Obviously, during a bubble you should tax until the bubble stops. Which means that you may be running a surplus for a while. But if you have bubbles on a regular basis then You're Doing It Wrong.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Aug 14th, 2011 at 01:51:53 PM EST
[ Parent ]

Display:

Top Diaries

Brexit: Get on with it already?

by Bernard - Jun 26
48 comments

Spain votes again

by Migeru - Jun 26
63 comments

Defeat from the Jaws of Victory

by rifek - Jun 27
47 comments

Reversing Brexit?

by Frank Schnittger - Jun 25
97 comments

Should I vote for Brexit?

by tyronen - Jun 22
38 comments

Recent Diaries

Occasional Series