19.6 Conclusion

Fiscal policy and government debt are central in the political and economic debate worldwide. This chapter discussed some of the economic issues that lie behind the policy decisions. As we have seen, economists are not in complete agreement about the measurement or effects of government indebtedness. Nor are economists in agreement about the best budget policy. And, of course, economists are not in charge of designing and enacting budget policies. For better or worse, that role goes to our elected leaders, who follow the recommendations of their economic advisers only when they choose to.

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