Optimal Correction of the Public Debt and Measures of Fiscal ...

Finding the Tipping Point - When Sovereign Debt Turns Bad

In addition, projections of standard measures of public debt relative ... “Sovereign Debt Risk and Fiscal Policy in Sweden.” NBER,. Working Paper 15810 ...

When Does Federal Debt Reach Unsustainable Levels?

... fiscal policy will provide substantial corrective measures ahead of time. ... government debt that materially change financial market prices.

Government debt and optimal monetary and fiscal policy

This makes it optimal to reduce government debt over time. The optimal speed of debt reduction is missed when using first-order approximations to optimal ...

Economic and Policy Tools for Reducing the Debt-to-GDP Ratio

The general consensus in the literature is that fiscal adjustment packages made up mostly of spending cuts are more likely to lead to lasting ...

Growth in a Time of Debt - Harvard University

3 Our focus on gross central government debt owes to the fact that time series of broader measures of government. This general rise in public indebtedness ...

Public Debt as Private Liquidity: Optimal Policy | NBER

Issuing more public debt raises welfare by easing the underlying financial friction; but this easing lowers the liquidity premium and increases the government's ...

Optimal correction of the public debt and measures of fiscal soundness

Under the optimal solution, the surplus reactivity to the debt-GDP ratio is independent of the debt ratio itself, but its size depends on the degree of ...

Optimal level of government debt - matching wealth inequality and ...

First, the burden and benefits of a change in government debt often do not accrue to the same generation. Second, taxes are distortionary and hence non-neutral.

Optimal reduction of public debt under partial observation of the ...

The government observes the level of the debt-to-GDP ratio and an indicator of the state of the economy, but does not directly observe the ...

5 Ways Governments Reduce National Debt - Investopedia

Financial repression is a term that describes measures by which governments channel funds to themselves as a form of debt reduction. ... A euro medium-term note ...

America's Fiscal Future | U.S. GAO

But this pattern has changed in recent decades. Unless current revenue and spending policies change, by 2028 debt will reach its historical high ...

The US fiscal mess: Some unpleasant fiscal simulations | CEPR

Therefore, given potential growth and nominal yields, the fiscal correction needed to stabilize the debt/GDP ratio is around 4 percentage points ...

Inflating Away the Public Debt? An Empirical Assessment

Higher inflation may not only lower the real payments on the outstanding nominal debt but also change primary fiscal surpluses. Our purpose in this paper is to ...

A brief survey of the literature on optimal public debt

The. OECD argued that most advanced countries (including Switzerland, see below) should make use of the fiscal space afforded by low interest rates to make ...

Estimating Optimum Growth-Maximizing Public Debt Threshold for ...

taxation and reduction in investments. III. DATA, ESTIMATION AND ... Government borrowing has been declining after 1995 due to fiscal austerity measures to.

Definitions of debt and the new government's fiscal rules - IFS

Should the government change the definition of debt in the fiscal rule? ... From the above, we can conclude that the new government might, by ...

General government debt - OECD

The OECD Short-Term Indicators Dashboard, covers G20 countries and selected regional aggregates. It allows users to follow key macro-economic developments using ...

Should we increase or decrease public debt? Optimal fiscal policy ...

Second, the optimal public debt increases after a positive public spending shock when its persistence is low, whereas it decreases when its persistence is high, ...

The implications of the European Union's new fiscal rules - Bruegel

Furthermore, countries with public debt above 60 percent of GDP were expected to reduce their debts by at least 1/20th of the gap between the ...

What the National Debt Means to You - Investopedia

No paradox is needed to explain why governments adopting fiscal austerity often cause deeper economic downturns, creating more significant deficits and ...