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Re-thinking debt burden: Going with the Flow?

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  • Vipul Bhatt

    (Department of Economics, James Madison University)

  • Andre R. Neveu

    (Department of Economics, James Madison University)

Abstract

This paper provides an empirical measure of debt burden based on a flow measure of debt we call "DaaF". This paper provides an empirical measure of debt burden based on a flow measure of debt we call "DaaF". We find that although both measures have witnessed substantial growth, especially following the 2008 crisis, the growth in debt-to-GDP ratio is much more substantial. Given the increased scrutiny of the U.S. debt policy, primarily stemming from the narrative surrounding the high and rapidly rising debt-to-GDP ratio, our findings here provide a counterpoint based on a more reasonable measure of the debt burden.

Suggested Citation

  • Vipul Bhatt & Andre R. Neveu, 2014. "Re-thinking debt burden: Going with the Flow?," Keio-IES Discussion Paper Series 2014-004, Institute for Economics Studies, Keio University.
    • Handle: RePEc:keo:dpaper:2014-004
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    Cited by:

    1. Akeem Rahaman & Scott Mark Romeo Mahadeo, 2024. "Constructing country-specific debt sustainability indices for developing countries," Working Papers in Economics & Finance 2024-01, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.

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    More about this item

    Keywords

    Debt; Fiscal Policy; Interest Rate; Debt Management;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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