Economics of Public Spending

This text argues that in many jurisdictions free market advocates have resorted to pubic sector downsizing and privatization as a means of alleviating problems of unemployment and slow economic growth, and that, as a consequence, the strategy of reducing public deficits, balancing budgets and achieving surpluses has become widely accepted as the only road to prosperity. The volume demonstrates that the strategy of public sector downsizing is based on a misleading conception of public finance. It seeks to dispel several myths about public deficits and debts, offering alternative approaches to fiscal and monetary policies.