IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-34647-6_7.html
   My bibliography  Save this book chapter

On Public Debts, Fiscal Deficits, and the Maastricht Rules

In: Dollars, Euros, and Debt

Author

Listed:
  • Vito Tanzi

Abstract

An empirical study co-authored by the author of this book — written for a seminar on public debt and fiscal policy in EMU, held at the European Commission in Brussels on 17 September 1999 at a time when EMU had just become official — concluded that: “A growing public debt appears to lead to higher direct taxes, lower public investment and, ultimately, a lower growth rate. In addition, higher debt does seem to crowd out private capital formation and raise interest rates.” It added, “[E]vidence for the EU suggests that it is possible [that] lower debt will have non-negligible [positive] effects on growth rates…” Therefore, “[T]he welfare impact over time of lowering public debt could be large” (see Tanzi and Chalk, 2000, p. 41). The conclusions of that study were ignored at the time they were presented and for several years afterwards, even by economists interested in the topic. Only many years later, when public debt started to attract attention, were those conclusions endorsed or challenged by various studies that had consistently failed to cite it.

Suggested Citation

  • Vito Tanzi, 2013. "On Public Debts, Fiscal Deficits, and the Maastricht Rules," Palgrave Macmillan Books, in: Dollars, Euros, and Debt, chapter 7, pages 63-69, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-34647-6_7
    DOI: 10.1057/9781137346476_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-34647-6_7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.