DEMOCRATS CAN NOT RIDE FOR LONG A KEYNESIAN AND NEO-CON BOAT SIMULTANEOUSLY
Prabhat Patnaik
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2023-05-19 13:05
Under pressure from globalised finance capital, most countries of the world have enacted legislation fixing the size of the fiscal deficit as a proportion of GDP; generally it is 3 percent, and in India it is 3 per cent for the centre and 3 per cent for the states. The US however has no such legislation; instead what it has is a ceiling on the absolute stock of public debt that can be held at any point of time. This is a very odd procedure, for as the economy grows, this ceiling has to be revised, and, not surprisingly, since 1960 the debt ceiling has been raised, revised or extended 78 times.