Public Debt Dynamics The Effects of Austerity, Inflation, and Growth Shocks
| Author/creator | Hasanov, Fuad Author |
| Other author | Cherif, Reda Author |
| Format | Electronic |
| Publication Info | Washington : International Monetary Fund |
| Description | 28 p. |
| Supplemental Content | Full text available from Ebook Central - Academic Complete |
| Summary | Annotation We study how macroeconomic shocks affect U.S. public debt dynamics using a VAR with debt feedback. Following a fiscal austerity shock, the debt ratio initially declines and then returns to its pre-shock path. Yet, the effect is not statistically significant. In a weak economic environment, the likelihood of a self-defeating austerity shock is much higher than in normal times. An inflation shock only slightly reduces the debt ratio for a few quarters. a positive growth shock unambiguously lowers debt. In our specification, the debt ratio is stationary, whereas a VAR excluding debt may imply an explosive debt path. |
| Access restriction | Available only to authorized users. |
| Technical details | Mode of access: World Wide Web |
| Genre/form | Electronic books. |
| ISBN | 9781475541274 |
| ISBN | 1475541279 (E-Book) Active Record |
| Stock number | 00013468 |
Availability
| Library | Location | Call Number | Status | Item Actions |
|---|---|---|---|---|
| Electronic Resources | Access Content Online | ✔ Available |