The Crowding Out Debate and the Economic Experience of the 1990s in the US

By:
Carlos F. Liard-Muriente,
Michael Meeropol
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The “crowding-out” debate or the argument that "fiscal discipline" will bring private investment to a growth path as a result of a decrease in real interest rates is appealing and an important discussion within Economics. More recently, the crowding-out debate was put in the forefront as an aftermath of the Clinton Administration economic boom legacy. However, we conclude based on data from the experience of the US economy during this period of extraordinary “fiscal discipline” that the evidence does not validate the typical Crowding-out arguments.


Keywords: Macroeconomics, Crowding-out, Budget Deficits, Interest Rates, Investment, Government Borrowing/Expenditures, US Economy
Stream: Economics and Management
Presentation Type: Paper Presentation in English
Paper: Crowding out Debate and the Economic Experience of the 1990s in the US, The


Carlos F. Liard-Muriente

Assistant Professor, Department of Economics, Central Connecticut State University
New Britain, CT, USA

I am an Assistant Professor of Economics at Central Connecticut State University (USA). My teaching interests include Development Economics, Econometrics, International Economics, Globalization, Latin America and the Caribbean Economics, Latinos/as in the US, Micro/Macroeconomics, and Money & Banking. My research interests include Development, International, Globalization, Macroeconomics, and Latin America and the Caribbean. I have several publications in the areas of Development, Macroeconomics and International economics.

Michael Meeropol

Professor, Department of Economics, Western New England College
Springfield, MA, USA

Michael Meeropol is the older son of Ethel and Julius Rosenberg. Born in New York City, as Michael Rosenberg, Meeropol spent his early childhood living in New York and attending local school there. His father Julius, an electrical engineer, was a member of the Communist Party. His mother Ethel, a union organizer, was also active in the Communist Party. When Michael was 7 years old, his parents were arrested and executed for conspiracy to commit espionage. He attended Swarthmore College, and did graduate work at King's College, Cambridge University and the University of Wisconsin at Madison where he received his Ph D in Economics. In 1998 he authored SURRENDER, How the Clinton Administration Completed the Reagan Revolution. (University of Michigan Press, paperback edition, 2000) At present, Michael Meeropol is an economics professor and Chair of the department at Western New England College in Springfield, Massachusetts.

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