Article in Journal
Comments on the Self-Financing Thesis and on the Keynesian Model
Hans-Werner Sinn
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 23, 03-04
ifo Institut, München, 2014
ifo Schnelldienst, 2014, 67, Nr. 23, 03-04
![](https://www.ifo.de/DocImg/ifosd_2014_23_1.jpg?c=1689236879)
Hans-Werner Sinn shows that debt-financed increases in public expenditure mean that public debt in any period will grow by an unavoidable residual deficit despite partial self-financing; and that such increases thus make full self-financing impossible.
JEL Classification: E120, E630