Debt Problems and Macroeconomic Policies
47 Pages Posted: 27 Apr 2000 Last revised: 22 Aug 2010
Date Written: October 1986
This paper examines the recent dramatic increase in the ratio of US non-financial debt to GNP. It concludes that it is largely the result of federal budget deficits. There does not appear to have been a major change in traditional patterns of private sector borrowing in recent years. The excessive accumulation of Federal debt probably threatens financial stability more than recent increases in private debt.
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