Política fiscal y desequilibrios económicos: el impacto de la composición del gasto público sobre el crecimiento de la economía mexicana

Fiscal deficits are related to J.M. Keynes proposals that were put discussed in the light of the European interwar period, the 1929 crisis and the Beveridge Report. Keynes main goals were to combat unemployment and make economic proposals for the European post-Second War World. It is highlighted that there is no precise definition of fiscal policy in Keynes writings, and the arguments in favour government direct intervention in economic activity needs to be understand because of the monetary policy failure of attaining full employment of economic resources.

Considering the above arguments this paper has two aims. First, discuss Keynes fiscal policy proposals and second analyse its impacts on economic growth in developing economies, particularly in Mexico. We argue that public spending in the Mexican economy during the industrialization and neoliberal periods has not been efficient nor functional because of the composition of public spending.