A Note on the Evaluation of Public Deficits: Net or Gross of Interest

In the abundant literature on the national debt, references occur frequently to government budget deficit EXCLUDING interest payments. The Author argues that reference to a budget deficit that excludes interest payments, while justified in certain contexts, is not justified in others. Indeed, it may induce incorrect or distorting conclusions when used to discuss the objectives of economic policy, and in particular th aim of stabilizing the size of the national debt. Italian version: "Una nota sulla valutazione dei disavanzi pubblici: al netto o al lordo degli interessi?" in Moneta e Credito, vol.42, (1988) pp.165-173.