Those economists who expected the increasing US budget deficits in recent years to have a negative impact on private investment spending have so far been proved wrong. Hans-Peter Fröhlich provides an analysis of what has happened and examines the interrelation between public sector deficits and...

The United States provides a classic example of a bottom-up system of federalism. It was created in 1787 when representatives of the then 13 colonies convened to ratify a constitution under which both the central government and the states would be sovereign entities. Within certain...