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The Real Structural Imbalance and Fiscal Stance in Australia During the Interwar Years
Author(s) -
Abbott Malcolm J.
Publication year - 1997
Publication title -
australian economic history review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.493
H-Index - 16
eISSN - 1467-8446
pISSN - 0004-8992
DOI - 10.1111/aehr.371005
Subject(s) - economics , debt , deficit spending , public sector , government (linguistics) , great depression , depression (economics) , interwar period , balance (ability) , government budget , keynesian economics , public finance , monetary economics , macroeconomics , economy , political science , psychology , world war ii , law , linguistics , philosophy , neuroscience
By using the concept of the constant employment budget balance and changes in real public debt it is possible to determine the size of the public sector’s real structural budget imbalances during the interwar period. In doing so the budget deficit of the public sector during the depression is shown to have been much larger than indicated by previous estimates of the nominal budget imbalance, and indicates that the fiscal stance of the government was expansionary during the worst year of the Great Depression rather than contractionary.