’s theory of functional finance (FF). A thorough discussion of this concept is helpful in reconsidering the debate on the nature … growth, deflation, and weak public finances. …

public expenditure and its financing via revenue and deficits, and economic growth. We review the various channels through … which public finances affect growth and its underlying determinants (institutional framework, employment, savings and … surveys the empirical findings on the impact of fiscal variables on sustained economic growth. …