| dc.description.abstract | The present worldwide recession is proving unusually stubborn. Large
reflationary packages, involving cuts in taxation and higher public spending, have been announced in several leading Western economies, but the
recovery so far has been fitful and uncertain. Accompanying the sluggishness of activity have been large public sector financial deficits, particularly
in the United Kingdom, the United States and West Germany. These
deficits were largely caused by the recession (as it has cut tax receipts), but
at the same time they are seen as serving the benign function of combating
the weakness of spending (because the deficits represent a demand injection into the economy). | |
