Fiscal Balances and World Economic Growth
Fiscal deficits (or surpluses) influence economic growth, and public spending can boost productivity through wise investments in infrastructure. However, industrialized countries increasingly view persistent fiscal deficits and the resulting accumulation of public debt as detrimental to long-term growth and competitiveness.
Suggested citation: “Fiscal Balances and World Economic Growth,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-06, pp. 19, 06.01.1996.