In both the UK and USA economies the budget deficit remains a central weakness. In the light of this problem this book presents a consistent economic framework for analysing the effects and implications of large bond-financed deficits

Government bonds are interest-bearing assets. Increasing public debt increases income, wealth, and consumption demand. The smaller government expenditure is, the larger consumption demand must be in equilibrium, and the larger must be public debt. Conversely, lower public debt implies higher...