Re: Debt reduction also creates fiscal space

["ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" <hliu@xxxxxxxxxxxxxx>]

Alan,

That narrow interpretation of Summers' meaning does not square with the
new Federal Budget.
Interest cost saving is merely one of the elbow rooms Summers is
alluding to.
The question remains, on a scientific basis, does the concept wash?

Henry

"Alan G. Isaac" wrote:

> All Summers is saying is that for a *given* level
> of government outlays we can have more
> government services if interest payments are
> smaller. The `fiscal space' is within the *given*
> level of expenditure.
> Alan Isaac
>
> HenryC.K.Liu wrote:
>
> > Summers: "Debt reduction also creates fiscal space."
> > Does PKT buy that as axiom?
> >
> > February 9, 2000
> > LS-383
> >
> > TREASURY SECRETARY LAWRENCE H. SUMMERS TESTIMONY BEFORE THE HOUSE
> > COMMITTEE ON WAYS & MEANS
> >
> > Full testimony:
> > http://www.ustreas.gov/press/releases/ps383.htm