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Can anyone trace the intellectual origin of the World Bank/IMF obsession 
with eliminating/restricting fiscal deficits as a panacea or part-panacea 
for economic problems in  Third World countries? 
 
In India the fiscal deficit percentages began to be treated as almost 
magical objectives on cue from international financial institutions since 
the early nineties. 
 
Perhaps a similar thing happened in Argentina, leading to its current 
crisis, as I understand that the regime was busy raising taxes even during  
recession when the need was really to pump-prime the economy. 
 
Instead of a phobia about fiscal deficit percentages the real issue seems 
to be whether the money spent is being used productively.  
 
So obvious a  thing could have been overlooked only in pursuit of an 
abstract idea backed by a doctrine.  
 
What could be the intellectual source of such blinkers? 
 
Anil Nauriya 
 
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