IDEAS home Printed from https://ideas.repec.org/p/cwl/cwldpp/780.html
   My bibliography  Save this paper

The Monetary-Fiscal Mix: Long-Run Implications

Author

Abstract

The long-run dynamics of public deficits and debt are modeled, assuming that public debt competes with capital for limited private savings. The interest costs of the debt are endogenously determined in this market, and the deficit in other budget transactions is a constant fraction of Gross National Product. Simulations with parameter values suggested by recent United States experience show the likelihood of unstable paths, along which debt grows faster than GNP indefinitely.

Suggested Citation

  • James Tobin, 1986. "The Monetary-Fiscal Mix: Long-Run Implications," Cowles Foundation Discussion Papers 780, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:780
    Note: CFP 645.
    as

    Download full text from publisher

    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d07/d0780.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sébastien Charles & Thomas Dallery & Jonathan Marie, 2014. "Entre tango et sirtaki : incohérence du régime monétaire et insoutenabilité de la dette publique," Revue française d'économie, Presses de Sciences-Po, vol. 0(3), pages 179-224.
    2. Charles, Sébastien & Dallery, Thomas, 2013. "Le Canada et l’austérité expansionniste dans les années quatre-vingt-dix : un « succès » macroéconomique à revisiter ?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 89(3), pages 207-230, Septembre.
    3. Alberto Bagnai, 2004. "Keynesian and neoclassical fiscal susteinability indicators, with applications to EMU member countries," Working Papers in Public Economics 75, University of Rome La Sapienza, Department of Economics and Law.
    4. Obstfeld, Maurice, 1989. "Fiscal deficits and relative prices in a growing world economy," Journal of Monetary Economics, Elsevier, vol. 23(3), pages 461-484, May.
    5. Bianconi, Marcelo, 2000. "The effects of alternative fiscal policies on the intertemporal government budget constraint," International Review of Economics & Finance, Elsevier, vol. 9(1), pages 31-52, February.
    6. Kugbee S. James & Insah Baba, 2015. "Fiscal Sustainability in the Ghanaian Economy: A Fiscal Reaction Function Approach," Economy, Asian Online Journal Publishing Group, vol. 2(1), pages 16-20.
    7. Pierre Duguay & Yves Rabeau, 1989. "Les effets macro-économiques de la politique budgétaire : de Keynes à la synthèse néo-classique," Revue Économique, Programme National Persée, vol. 40(4), pages 597-620.

    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:cwl:cwldpp:780. 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: Brittany Ladd (email available below). General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    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.