How Real Is the Federal Deficit?

Showing that 1970s inflation made budget surpluses look like deficits and that the recession was a combination of tight money and restrictive federal spending, the author argues that the federal deficit has long been miscalculated and examines the resulting implications

Eisner argues that the federal deficit as currently measured is inaccurate and misleading. When inflation is properly accounted for, he points out, a dramati cally different picture of the deficit oc curs. In light of these new deficit fig ures, Eisner challenges current eco nomic theory and interpretations of our recent past. He finds that the deficit has not been as large as recently measured and that efforts to reduce the deficit may do more harm than good. This book will spark serious debate among economists and policymakers. The clarity of its arguments and strength of its evidence are convincing. Strongly recommended for academic and large public libraries. Richard C. Schim ing, Economics Dept., Mankato State Univ., Minn.
Copyright 1986 Reed Business Information, Inc.