Jamal Awil

← Austerity

Given politicians' time-inconsistent preferences. [fact]

Given politicians' time-inconsistent preferences, "the (level of the) public debt is the state variable that gives the current government an instrument to control the future government." The short version of this complementary story is that conservatives should collect less in taxes and leave more debt so that any liberal government coming to power will be constrained.

Mark Blyth, Austerity, loc. 454