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Deficits, Debts and Growth: A Reprieve but not a Pardon

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  • Anwar Shaikh
  • Dimitri B. Papadimitriou
  • Claudio H. dos Santos
  • Gennaro Zezza

Abstract

These are fast moving times. Two years ago, the U.S. Congressional Budget Office (CBO, 2001) projected a federal budget surplus of $172 billion for fiscal year 2003. One year ago, the projected figure had changed to a deficit of $145 billion (CBO 2002). The actual figure, near the end of fiscal year 2003, turned out to be a deficit of about $390 billion. And just one month ago, President Bush submitted a request to Congress for an additional $87 billion appropriation for war expenditures, over and above the $166 billion tallied so far. It is widely anticipated that even this will have to be revised upward by the end of the coming year (Stevenson 2003; Firestone 2003).

Suggested Citation

  • Anwar Shaikh & Dimitri B. Papadimitriou & Claudio H. dos Santos & Gennaro Zezza, 2003. "Deficits, Debts and Growth: A Reprieve but not a Pardon," Economics Strategic Analysis Archive 03-10, Levy Economics Institute.
    • Handle: RePEc:lev:levysa:03-10
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    File URL: http://www.levyinstitute.org/pubs/stratan-oct-03.pdf
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    References listed on IDEAS

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    1. Claudio H. Dos Santos & Anwar M. Shaikh & Gennaro Zezza, 2003. "Measures of the Real GDP of U.S. Trading Partners: Methodology and Results," International Trade 0309021, University Library of Munich, Germany.
    2. Wynne Godley & George McCarthy, 1998. "Fiscal Policy Will Matter," Challenge, Taylor & Francis Journals, vol. 41(1), pages 38-54, January.
    3. Wynne Godley & Alex Izurieta, 2001. "As The Implosion Begins . . .? Prospects and Policies for the U.S. Economy: A Strategic View," Economics Strategic Analysis Archive 01-7, Levy Economics Institute.
    4. Wynne Godley, 1999. "Seven Unsustainable Processes: Medium-Term Prospects and Policies for the United States and the World," Economics Strategic Analysis Archive 99-10, Levy Economics Institute.
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    Cited by:

    1. Greg Hannsgen, 2007. "The Transmission Mechanism of Monetary Policy: A Critical Review," Chapters, in: Philip Arestis & Malcolm Sawyer (ed.), A Handbook of Alternative Monetary Economics, chapter 13, Edward Elgar Publishing.
    2. Constantine, Collin, 2014. "Rethinking the Twin Deficits," MPRA Paper 58798, University Library of Munich, Germany.
    3. Alex Izurieta & Terry McKinley, 2006. "Addressing Global Imbalances: A Development-Oriented Policy Agenda," Working Papers 23, International Policy Centre for Inclusive Growth.

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