Questioning the Soft Budget Constraint

First, this paper claims that the soft budget constraint is a contradiction in terms by showing that each "soft" budget line is in fact an incorrect one. By classifying the problems that were formerly conglomerated under the name of the "soft budget constraint," we show that a "hard" budget constraint exists for each specific problem. This leads to the realization that each of these problems originally belonged in a different analytic framework, and does not need to be related to the soft budget constraint. Finally, we illustrate how the former conclusions drawn from the "soft" perspective can be adjusted to form better interpretations under the original frameworks. Hence, we conclude that there is no such thing as the soft budget constraint.