Article in Journal
Comments on the Self-Financing Thesis and on the Keynesian Model
Hans-Werner Sinn
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 23, 03-04
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 23, 03-04
Hans-Werner Sinn shows that debt-financed increases in public expenditure mean that public debt in any period will grow by an unavoidable residual deficit despite partial self-financing; and that such increases thus make full self-financing impossible.
JEL Classification: E120, E630