Research Catalog

Title

Eliminating the U.S. Federal Budget Deficit by 1993 [electronic resource]: The Interaction of Monetary and Fiscal Policy / Richard Herd and B. Ballis

Author

Herd, Richard.

Publication

Paris : OECD Publishing, 1988.

Details

Additional Authors

Ballis, B.

Description

27 p.; 21 x 29.7cm.

Summary

This paper uses the OECD's economic model, INTERLINK, to examine the consequences of eliminating the U.S. federal government deficit. Such action could lead to either lower real interest rates, lower inflation rates or a smaller current account deficit, depending on the stance of monetary policy. The elimination of the U.S. Federal deficit over the medium term could significantly lower the U.S. inflation rate and improve the current account deficit, if nominal interest rates were held constant in the face of falling inflation rates. In the absence of a reduction in the fiscal deficit, a significant increase in interest rates would be necessary to achieve the same reduction in the inflation rate. If, however, policy tightening is not necessary to contain inflation, a reduction in the fiscal deficit might be accompanied by a fall in nominal and real interest rates. In this case, a reduction in the fiscal deficit would not necessarily result in an improvement in the current account ...

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.59

Uniform Title

OECD Economics Department Working Papers, no.59.

Subject

• Economics
• United States

LCCN

10.1787/384731238002

OCLC

oecd-lib-003210

Author

Herd, Richard.

Title

Eliminating the U.S. Federal Budget Deficit by 1993 [electronic resource]: The Interaction of Monetary and Fiscal Policy / Richard Herd and B. Ballis

Imprint

Paris : OECD Publishing, 1988.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.59

OECD Economics Department Working Papers, 1815-1973 ; no.59.

Connect to:

http://dx.doi.org/10.1787/384731238002

Indexed Term

Economics

United States

Added Author

Ballis, B.

Other Standard Identifier

10.1787/384731238002 doi