Deficit - so what?

[Sven R Larson <larson@xxxxxx>]

After last year's disagreement between democrats and republicans in the
presidential campaign over the budget deficit issue, it lloks like some
sort of consensus is emerging from the awareness that there actually is
a deficit ahead:

http://www.nytimes.com/2001/11/29/business/29ECON.html

An interesting passage:

"Both sides said they were willing to run deficits for a year or two in
an effort to revive the economy and pay the bill for national security."

Of course, paying down the national debt is still a "priority". Despite
that, the fiscal policy outlook is slightly more positive in the US than
in the EU.

Agree?
/srl

--
Sven R Larson
Ph.D.; Assistant professor of economics
Department of Social Sciences, 22.2
Roskilde University
PB 260
DK-4000 Roskilde, Denmark
http://www.ruc.dk/english/