Limitless deficit financing for economic prosperity : Where they got keynes’s deficit spending wrong ?
Other Title(s)
تمويل العجز بلا حدود من أجل الرخاء الاقتصادي : كيف أخطأوا فهم فكرة تمويل العجز لكينز ؟
Author
Source
Journal of King Abdulaziz University : Islamic Economics
Issue
Vol. 32, Issue 1 (31 Jan. 2019), pp.97-109, 13 p.
Publisher
King Abdulaziz University Scientific Publishing Center
Publication Date
2019-01-31
Country of Publication
Saudi Arabia
No. of Pages
13
Main Subjects
Topics
Abstract EN
The recent wave of recommendations of unlimited credit creation to finance government expenditures to achieve economic growth and prosperity seems to be grounded in misunderstanding Keynes’s countercyclical fiscal policy.
Keynes’s deficit spending denotes the stimulus geared towards increasing private investment as opposed to big government spending.
Taking Japan as a case study, I showcase that deficit financing meeting Keynesian preconditions, including a sound monetary system, well-developed financial markets, and lower/zero interest rate, may not lead to raising growth and lowering public debts as the proponents predict.
I maintain that unlimited credit expansion to the public sector in consumption-based economies, which is the general case for developing countries, is most likely to generate inflation while leaving the economy’s productivity unchanged.
American Psychological Association (APA)
Javed, Sajid Amin. 2019. Limitless deficit financing for economic prosperity : Where they got keynes’s deficit spending wrong ?. Journal of King Abdulaziz University : Islamic Economics،Vol. 32, no. 1, pp.97-109.
https://search.emarefa.net/detail/BIM-851791
Modern Language Association (MLA)
Javed, Sajid Amin. Limitless deficit financing for economic prosperity : Where they got keynes’s deficit spending wrong ?. Journal of King Abdulaziz University : Islamic Economics Vol. 32, no. 1 (Jan. 2019), pp.97-109.
https://search.emarefa.net/detail/BIM-851791
American Medical Association (AMA)
Javed, Sajid Amin. Limitless deficit financing for economic prosperity : Where they got keynes’s deficit spending wrong ?. Journal of King Abdulaziz University : Islamic Economics. 2019. Vol. 32, no. 1, pp.97-109.
https://search.emarefa.net/detail/BIM-851791
Data Type
Journal Articles
Language
English
Notes
Text in English ; abstracts in English and Arabic.
Record ID
BIM-851791