Mr. White, economist in the Financial Problems and Policies Division, is a graduate of Harvard University.
Additional studies of this subject are as follows:
Villard, Henry H. Deficit Spending and the National Income (New York, Farrar and Rinehart, 1941).
Wallich, Henry C. “Income-Generating Effects of a Balanced Budget,” Quarterly Journal of Economics, LIX, pp. 78–91 (November 1944).
Economic Survey of Denmark: National Budget for 1949 (Copenhagen, 1949).
Council of Economic Advisers. The Economic Report of the President Transmitted to the Congress (Washington, U.S. Government Printing Office, January 1949 and January 1950).
Brown, E. Cary. “Analysis of Consumption Taxes in Terms of the Theory of Income Determination,” American Economic Review, XL, pp. 74–89 (March 1950).
Econometrica, Vol. 13 (1945) and Vol. 14 (1946):
“Multiplier Effects of a Balanced Budget,” by Trygve Haavelmo, October 1945, pp. 311–18.
“.... Some Monetary Implications of Mr. Haavelmo’s Paper,” by G. Haberler, April 1946, pp. 148–49.
“.... The Implication of a Lag for Mr. Haavelmo’s Analysis,” by R. M. Goodwin, April 1946, pp. 150–51.
“.... Further Analysis,” by Everett E. Hagen, April 1946, pp. 152–56.
“.... Reply,” by Trygve Haavelmo, April 1946, pp. 156–58.
This discussion is entirely in terms of a price elasticity of demand for imports, defined with reference to changes in real income, and therefore in savings and consumption, which occur in response to changes in import prices at a given level of money income. No attention need be given at this point to the marginal propensity to import.
Expenditures on goods and services should not be reduced by the amount by which they increase the savings and imports of the provider of those goods and services: the total expenditures constitute an addition to money demand. (The savings resulting from the increased income which this demand produces cannot be considered as a deduction from that additional money demand itself. If they were so considered, consistency would require that the consumption expenditures resulting from the increased income be added to that money demand; such treatment would amount to computing the total “multiplied” impact of government expenditure—a concept very different from the customary measure of inflationary forces, and one which would combine the causal inflationary factors with the inflation they actually produce.)