Public Debt Dynamics.

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 likel...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autor principal: Hasanov, Fuad
Otros Autores: Cherif, Reda
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Washington : International Monetary Fund, 2012.
Colección:IMF Working Papers.
Temas:
Debts, Public.
Inflation (Finance)
Dettes publiques.
Inflation.
Debts, Public
Acceso en línea:Texto completo
Descripción
Sumario: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.
Descripción Física:1 online resource (29 pages)
ISBN:9781475565546
1475565542

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