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Not All Deficits Are Created Equal Essay

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John A. Tatom is a great write that explains about deficits and its effects on economics in his article, ‘Not All Deficits Are Created Equal’. There are several issues and some are critical such as he tells that ballooning federal deficit may harm the U.S. economy. Tatom analyses that the budget deficits are lower than national savings rate while its major reason is increasing high interest rates. This analysis have two faults, first is raising high deficit interest rates and second is source of deficit influence on economy. There is a conflict on the relationship between budget deficits and interest rates because some evidence shows its negati...

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