Abstract

http://ssrn.com/abstract=1599045
 


 



Public Debt Sustainability and Alternative Theories of Interest


T. Aspromourgos


University of Sydney - Discipline of Economics

Daniel Rees


affiliation not provided to SSRN

Graham White


University of Sydney - School of Economics and Political Science

2010

Cambridge Journal of Economics, Vol. 34, Issue 3, pp. 433-447, 2010

Abstract:     
This paper reappraises sustainable trajectories of public debt and fiscal balance, with particular reference to the possible relations between the interest rate on debt and the growth rate of the economy. From the standpoint of the approach to the theory of interest proposed by Keynes-and, in a certain sense, also by Sraffa-the analysis opens up the possibility of sustaining permanent primary budget deficits. However, the extent to which this standpoint enables one to revise the spectrum of feasible empirical magnitudes for sustainable fiscal balances appears rather modest.

Keywords: Sustainable fiscal balance, Keynes, Sraffa

JEL Classification: E43, E58, E63, H63

Accepted Paper Series


Not Available For Download

Date posted: May 3, 2010  

Suggested Citation

Aspromourgos , T. and Rees, Daniel and White, Graham, Public Debt Sustainability and Alternative Theories of Interest (2010). Cambridge Journal of Economics, Vol. 34, Issue 3, pp. 433-447, 2010. Available at SSRN: http://ssrn.com/abstract=1599045 or http://dx.doi.org/10.1093/cje/bep010

Contact Information

Tony Aspromourgos (Contact Author)
University of Sydney - Discipline of Economics ( email )
P.O. Box H58
Australia Square
Sydney, NSW 2006
Australia
Daniel Rees
affiliation not provided to SSRN
Graham White
University of Sydney - School of Economics and Political Science ( email )
Sydney
Australia
Feedback to SSRN


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