Commentary: Monetary Policy Implications of Greater Fiscal Discipline
نویسنده
چکیده
The risks generally associated with public indebtedness were already clearly identified by Adam Smith. In his principal work, The Wealth of Nations, he wrote: “The practice of funding has gradually enfeebled every state which has adopted it.” To me this does not mean that all public debt has to be called into question, even if influential politicians here in the United States are once again demanding a constitutional requirement of a balanced budget. On the other hand, it is true that a government which incurs an increasing level of debt finds itself on a path between Scylla and Charybdis.
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Commentary: Monetary Policy Implications of Greater Fiscal Discipline
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