It is good to see the fiscal policy debate ramping up in advance of the December budget. One aspect of the debate that has received a good deal of attention – not least from the Minister for Finance himself – is the problem of compounding debt service costs. This concern is understandable given the scary arithmetic involved. But it is not something usually emphasised by economists and I think is distorting the debate.
Deficits and Discounting
- Post author By John McHale
- Post date November 3, 2009
- Categories In Fiscal Policy
- Tags Discounting, Fiscal Policy
- 9 Comments on Deficits and Discounting