NEW HAVEN – Every few months this year, the US government appears on the verge of shutting down. It happened in May, when congressional Republicans initially refused to raise the debt ceiling, and in September, when Congress managed to avert a last-minute shutdown by passing a stopgap bill to keep the federal government open until November 17.

In the event that Congress fails to reach an agreement to fund federal agencies by the next deadline, millions of government employees, including millions of military personnel, will be furloughed, disrupting critical public services.

While government shutdowns are a uniquely American phenomenon, the United States highlights the dilemmas facing fiscal policymakers today. It also sheds new light on the ongoing debate among economists over whether government budgets should be balanced, particularly in the aftermath of the COVID-19 pandemic.

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QOSHE - Should Fiscal Policy Resemble Private Budgets? - Koichi Hamada
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Should Fiscal Policy Resemble Private Budgets?

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03.11.2023

NEW HAVEN – Every few months this year, the US government appears on the verge of shutting down. It happened in May, when congressional Republicans initially refused to raise the debt ceiling, and in September, when Congress managed to avert a last-minute shutdown by passing a stopgap bill to........

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