This paper traces the evolution of the concept of the cyclically adjusted budget from the 1930s to the present. The … idea of balancing the budget over the cycle was first conceived in Sweden in the 1930s by the economists of the Stockholm …

aggregate demand and the budget balance in EU15 countries. The results show that a simultaneous increase in the wage share in … all EU15 countries would increase demand and the primary budget balance in all countries. A simultaneous increase in …

expansion. This policy mix leads to an improvement in the budget balance in all the EU15 countries, suggesting that expansionary …

budget constraint, and accelerating inflation at the end of the 1960s, functional finance fell out of favor. The paper …

examine the budget deficit in a growing economy, and will show mainly the following results. 1) If the initial savings is … positive (or investment of private firms is not large), we need budget deficit including interest payments on government bonds …) If the interest rate on the government bonds is larger than the growth rate, the budget surplus excluding interest …

budget deficit. Although the government has addressed this issue through a burden-sharing scheme with the Central Bank, the … household budget analogy by arguing that fiscal deficit is not evidence of overspending. Also, it is argued that the burden … monetary operation. Hence, if the role of the central bank is not isolated in macroeconomic analysis, the government budget is …

Fiscal consolidation often entails balanced budget requirements (BBRs) for local governments. However, little is known …. Tighter rules pushed local governments to increase their net budget surplus by 0.6%-1% of local income. Treated municipalities …