Deficit financing in contemporary economies : effects and implications
Other Title(s)
تمويل العجر في الاقتصادات المعاصرة : الآثار و النتائج
Author
Source
Journal of King Abdulaziz University : Islamic Economics
Issue
Vol. 32, Issue 1 (31 Jan. 2019), pp.87-95, 9 p.
Publisher
King Abdulaziz University Scientific Publishing Center
Publication Date
2019-01-31
Country of Publication
Saudi Arabia
No. of Pages
9
Main Subjects
Abstract EN
Ann Pettifor’s paper on deficit financing elucidates how Keynesian policies in times of economic slumps reduce public deficits.
A public misconception is that during economic downturns, increasing government expenditure will worsen the deficit.
Deficit financing aims to increase economic output via creating/salvaging jobs and increasing productivity.
Thus, the temporary increase in spending creates a longterm increase in economic output, so the size of the deficit in relation to GDP ultimately decreases.
However, effective targeting of government expenditure is critical if it is to benefit the economy.
Evidence from the United States, Taiwan, and Bangladesh, shows how deficit financing used effectively, and not solely to gain political capital, is necessary to produce economic growth.
American Psychological Association (APA)
al-Haqq, Mahfuz. 2019. Deficit financing in contemporary economies : effects and implications. Journal of King Abdulaziz University : Islamic Economics،Vol. 32, no. 1, pp.87-95.
https://search.emarefa.net/detail/BIM-851789
Modern Language Association (MLA)
al-Haqq, Mahfuz. Deficit financing in contemporary economies : effects and implications. Journal of King Abdulaziz University : Islamic Economics Vol. 32, no. 1 (Jan. 2019), pp.87-95.
https://search.emarefa.net/detail/BIM-851789
American Medical Association (AMA)
al-Haqq, Mahfuz. Deficit financing in contemporary economies : effects and implications. Journal of King Abdulaziz University : Islamic Economics. 2019. Vol. 32, no. 1, pp.87-95.
https://search.emarefa.net/detail/BIM-851789
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 93
Record ID
BIM-851789