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The 1989 analysis of Richard Cebula and James Koch of the effects of federal budget deficits on long-term US interest rates is expanded. Support is found for the Cebula-Koch proposition that domestic interest rates rise as the public debt surpasses the international inflow of funds. However, it is pointed out that the two failed to adequately consider the impact of the Federal Reserve's monetary policy on interest rates. At the time of the Cebula-Koch study, the Federal Reserve deliberately kept the money markets tight which led to the rise in interest rates and the stabilization of the exchange rates. Therefore, in addition to the previous explanation that budget deficits affect interest rates, the impact of the policies of the Federal Reserve should also be recognized.

Douglas H. Bowles [*] 1. Introduction It is clear that at least one primary thrust of Socio-Economics is the incorporation of a more robust theory of value into a relatively [...]

The article addresses the history of economic terms and ideas propounded by economist Leon Hirsch Keyserling. From 1933 to 1937, Keyserling was legislative assistant to Senator Robert Wagner whom he aided in drafting a $33 billion public works bill and the wage and collective bargaining sections of the National Industrial Recovery Act in 1934. One of the bills that Keyserling was active in pushing for, the Employment Act of 1946, turned out to be central in bringing him to the attention of the economics profession. Keyserling helped to create and shape the Council of Economic Advisors (CEA), one of the primary institutions through which the economics profession has influenced economic policy. His period of highest political influence occurred at a fascinating time for the economics profession, with the confluence of events like the Depression and World War II coming together with the new Keynesian thinking. Keyserling felt strongly that continual economic growth should be emphasized as a chief policy goal, since he saw growth and social welfare and equity as tied together.