Take It Easy? A look at the consolidation of public finances in the US

Following the 2008/09 recession, the USA reduced its general government deficit, chiefly by means of significant spending cuts. This was in contrast to previous periods when the focus was more on consolidating by means of revenues. This further decreased what was already relatively weak public capital expenditure with possibly adverse effects on the growth potential of the economy as a whole. However, the debt ratio can be lowered precisely under certain preconditions by the debt-financed expansion of public investment.

Take It Easy? A look at the consolidation of public finances in the US(PDF, 151 KB, non-accessible)