TITLE:
The Restoration of Fiscal Stability. A Public Choice Approach on the Problem of Public Debt
AUTHORS:
Panagiotis Evangelopoulos
KEYWORDS:
Fiscal Stability, Public Choice, Classical Liberal State, Democracy
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.2,
February
6,
2018
ABSTRACT: In contemporary democracy fiscal policy is not
employed for the fiscal control of necessary state activities but for
generation of deficits which causes the state to feed on itself, expands enormously in the service of special interests and is contrary to the public’s interest in fiscal
stability and discipline. Starting from the origin of and the reason for, the
classical liberal state, I undertake an analysis of the historical theoretical
background of public choice. The development and application of public choice
analysis can work towards restoring fiscal stability, especially after the
outbreak of the global financial crisis that generated the enormous increases
in the public deficit and debt in the developed democracies.