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Recent state and municipal budget crises have generated a great deal of consternation among market participants and policymakers; they have also led scholars to debate the merits of bailouts or other forms of debt relief. This Essay considers why the mechanisms that were supposed to control...
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Most theorists of public finance treat budgeting as a technical problem concerned centrally with projecting revenues and expenses. To the contrary, I treat budgeting as a political problem, with technical matters serving to obscure more than illuminate the political economy of budgeting. This...
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sovereign debt is to maintain access to international capital markets. However, in a democracy, one generation may choose …
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democracy. Scholars opposed to the cancelation of sovereign debt refer to the Glorious Revolution of 1688, in which the British … identifying the intrinsic contradictions of representative democracy, public debt, and modern banking in early modern England …, contradictions that were incompatible with the well-being and democracy of a community. It further examines how the contradictions of …
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This paper considers an economy in which policymakers with different preferences concerning fiscal policy alternate in office as a result of democratic elections. It is shown that in this situation government debt becomes a strategic variable used by each policymaker to influence the choices of...
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