Debt and Monetary Policy: The Policy Issues
The paper explores the implications of high debt for monetary policy. In Europe, debt (and deficits) play a special role at present in the run up to Maastricht because large debts are seen as a threat to the integrity of the new European money. The paper reviews two historical episodes-- the German, UK, and French experience in the 1920s and the US debt liquidation of the 1950-1980 period. The theoretical review focuses on hypotheses of Keynes, Clark and Sargent- Wallace. The paper adds to the range of concerns private balance sheet vulnerability.
|Date of creation:||May 1996|
|Date of revision:|
|Publication status:||published as Calvo, Guillermo and Mervyn King. The debt burden and its consequences for monetary policy: Proceedings of a conference held by the International Economic Association at the Deutsche Bundesbank, Frankfurt, Germany, IEA Conference Volume, no. 118. New York: St. Martin's Press; London: Macmillan Press; in association with the International Economic Association, 1998.|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marta Campillo & Jeffrey A. Miron, 1996.
"Why Does Inflation Differ Across Countries?,"
NBER Working Papers
5540, National Bureau of Economic Research, Inc.
- Alan S. Blinder, 1982. "On the Monetization of Deficits," NBER Working Papers 1052, National Bureau of Economic Research, Inc.
- James Tobin & Michael Haliassos, 1988.
"The Macroeconomics of Government Finance,"
Cowles Foundation Discussion Papers
888, Cowles Foundation for Research in Economics, Yale University.
- John B. Taylor, 1995. "Monetary policy implications of greater fiscal discipline," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 151-170.
- Alberto Alesina & Allan Drazen, 1989.
"Why are Stabilizations Delayed?,"
NBER Working Papers
3053, National Bureau of Economic Research, Inc.
- Henning Bohn, .
"A Positive Theory of Foreign Currency Debt,"
Rodney L. White Center for Financial Research Working Papers
19-88, Wharton School Rodney L. White Center for Financial Research.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5573. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.