Public debt sustainability and alternative theories of interest
AbstractThis paper reappraises sustainable trajectories of public debt and fiscal balance, with particular reference to the possible relations between the interest rate on debt and the growth rate of the economy. From the standpoint of the approach to the theory of interest proposed by Keynes--and, in a certain sense, also by Sraffa--the analysis opens up the possibility of sustaining permanent primary budget deficits. However, the extent to which this standpoint enables one to revise the spectrum of feasible empirical magnitudes for sustainable fiscal balances appears rather modest. Copyright The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.
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Bibliographic InfoArticle provided by Oxford University Press in its journal Cambridge Journal of Economics.
Volume (Year): 34 (2010)
Issue (Month): 3 ()
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- N. Bilkic & B. Carreras Painter & T. Gries, 2013.
"Unsustainable sovereign debt—is the Euro crisis only the tip of the iceberg?,"
International Economics and Economic Policy,
Springer, vol. 10(1), pages 1-45, March.
- Natasa Bilkic & Ben Carreras Painter & Thomas Gries, 2012. "Unsustainable Sovereign Debt - is the Euro Crisis only the Tip of the Iceberg?," Working Papers 56, University of Paderborn, CIE Center for International Economics.
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