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Budget Deficits and Macroeconomic Policy
ISBN: 9780230373280
Platform/Publisher: SpringerLink / Palgrave Macmillan UK
Digital rights: Users: unlimited; Printing: unlimited; Download: unlimited
Subjects: Palgrave Economics & Finance Collection;

Discussions of macroeconomic policy often focus on changes in the budget deficit. A low budget deficit is one of the criteria for admission to the EMU. But some combinations of fiscal measures having a given effect on the budget deficit can have damaging effects on the principal macroeconomic objectives such as inflation and full employment, whereas other combinations will not. This is illustrated by using results from simulations for various OECD countries.