In a message dated 99-02-02 10:11:07 EST, doug quotes a keynesian article: << For a 1996 report on fiscal policy around the world, IMF economists conducted a detailed study of 62 attempts by industrial countries over the prior quarter-century to get their finances in order. The study concluded that the 14 cases where governments had been the most draconian -- notably Denmark and Ireland in the mid-1980s -- resulted in the fastest growth. "The simple 'Keynesian' view of fiscal consolidation is that lower government purchases or higher taxes reduce aggregate demand," the report said. Instead, it concluded, "there may be a virtuous circle between economic growth and debt-ratio reduction." >> Keynes view on debt (at least the way I understand it) was that debt was good when the economy was stalled at a less than full employment equilibrium. When an economy was expanding, I do believe he was opposed to continuing debt. maggie coleman [EMAIL PROTECTED]
