In response to both Beth and Bill, I think that there is a role for
government borrowing, that is when there is some concern over the
level of aggregate demand being too high. In other words, when the economy
is near full employment, or when demand inflation of the balance of trade
deficit
are concerns, then governments may borrow to reduce demand pressures. Of
course, taxes on high incomes or elsewhere can probably do the same thing
more efficiently, but that may be harder to sell politicly!
Peter Kriesler
School of Economics
UNSW
Sydney 2052
http://economics.web.unsw.edu.au/people/pkriesler/
Received on Mon Feb 3 05:09:44 2003
This archive was generated by hypermail 2.1.8 : 01-03-05 MET