A relation, familiar in the literature on the feasibility of persistent government
deficits, is restated to accommodate the Office of Management and Budget projections. It is then shown that U.S. budget policy was not on a long-run feasible course
in the period from fiscal year 1982 through fiscal year 1987; but, when monetization
of the debt and taxes on interest are taken into account, the projected debt is on a
potentially feasible course.
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