The Theory of Fiscal Economics

The Theory of Fiscal Economics, by Earl R. Rolph, develops a comprehensive framework for understanding how government financial activity influences the private economy. Rolph argues that all such activity can be categorized as either market operations—purchases and sales of goods, services, or claims—or transfer payments, both positive and negative. Subsidies and interest on debt provide cash inflows to private groups, while taxes extract it. These mechanisms do more than alter monetary bal...