Fiscal adjustment becomes like walking up the down escalator when growth-promoting spending is cut so much as to lower growth and thus the present value of future tax revenues to a degree that more than offsets the improvement in the cash deficit. Although short-term cash flows matter, a preponderant focus on them encourages governments to invest too little. Cash flow targets also encourage governments to shift investment spending off budget, by seeking...
Vea más
INFORMACIÓN
-
2007/03/01
-
Documento de trabajo sobre investigaciones relativas a políticas
-
WPS4158
-
1
-
1
-
2010/07/01
-
Disclosed
-
Walking up the down escalator : public investment and fiscal stability
-
public capital