The John Hyde Archives

Historic archive of articles and newspaper columns written by former Australian politician John Hyde OAM.

Brookings on Deficits

Budget  Monetary Policy  Fiscal Policy  Economics 

  • Aside from printing money, a govt deficit must be financed by bidding for the same funds that private investors seek.
  • Brookings' objection to a high budget deficit is that it will reduce economic growth by increasing consumption at the expense of investment.
  • Deficits allow govts to spend money that is not raised in taxes.