What is a fiscal imbalance?
What is a fiscal imbalance, what are its effects and how should governments balance their books?
In this short video, Professor Pasquale Scaramozzino outlines the causes and effects, and examines the arguments put forward on how to deal with them.
After watching, think about who you think should carry the can when things go wrong. Should the government cut public spending and reduce services – although this might negatively affect the weakest parts of the population? Should the government increase taxes – although this might have a depressive effect on business and employment? Or should the government rather increase public spending and/or decrease taxes, in an effort to stimulate economic growth? Ultimately, is it fair to shift the burden of public deficits to future generations?
Share your thoughts in the comments area.
Understanding Public Financial Management: How Is Your Money Spent?
Understanding Public Financial Management: How Is Your Money Spent?
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