Munich Personal RePEc Archive

Crowding Out, Deficits, and Interest Rates: Reply

Cebula, Richard (1987): Crowding Out, Deficits, and Interest Rates: Reply. Published in: Public Choice , Vol. 58, No. 1 (21. July 1988): pp. 95-97.

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Abstract

This Note endeavors to illustrate the relevance of the impact of the budget deficit upon the interest rate to the issue of crowding out. It is argued that empirical studies of the impact of deficits upon interest rates may be very useful in det­ermining whether (and how) crowding out occurs, but that additional empirical analysis involving the interest sensitivity of commodity market demand is needed to then determine the degree of crowding out.

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