Who among the following, first mooted the idea of deficit financing ?
Adam Smith
Alfred Marshall
John Maynard Keynes
Milton Friedman
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UPSC CDS-1 – 2022
John Maynard Keynes is credited with first mooting and popularizing the idea of deficit financing as a tool for economic management, particularly during times of recession.In his work, notably “The General Theory of Employment, Interest and Money,” Keynes argued that government spending, even financed by deficits, was necessary to stimulate aggregate demand and reduce unemployment during economic downturns.