CAM THE US DEFICIT BE TAMED? |
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| Authors: | James Nixon |
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| Institution: | Nixon Research Fellow in the Centre for Economic Forecasting at the London Business School. He has recently returned from the US where he met several of the key players in this debate. |
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| Abstract: | There now appears to be a consensus in the US towards tackling the budget deficit. James Nixon looks at some of the arithmetic underlying proposals to balance the budget by the year 2002. In particular he challenges the view that this deficit-cutting exercise can take place without any loss to output even if the proposed reductions are seen to be fully credible. He also questions the underlying methodology of the calculations. |
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