What is the movement of economic activity from the private sector to the public sector and vice versa

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY THE DEPUTY OF ST. MARY

ANSWER TO BE TABLED ON TUESDAY 16th NOVEMBER 2010

Question

Would the Minister confirm that moving demand/economic activity from the private sector to the public sector, or vice versa is based inter alia on the assumption that it –

has no impact on inflation, assuming that the relationship between demand and capacity in each sector of the economy remains broadly the same?
has no impact on the total of economic activity in an economy as measured by GVA or GNI or both?

Answer

It is not possible for the Minister to confirm or deny such a theoretical question.