The U.S. Public Debt: Implications for Growth
Summary:
The increase in the U.S. public debt over the past twelve years raises questions about its implications for investment and economic growth. This paper places these developments within an international and historical context and quantitatively examines the implications of various measures of the current U.S. public debt-to-GDP ratio on economic growth. The analysis is undertaken through extensions of recently developed endogenous growth models. The results suggest that while higher levels of the public debt may affect long-run economic growth negatively, the order of magnitude is not large enough to be a cause for serious concern.
Series:
Working Paper No. 1994/004
Subject:
Balance of payments Current account deficits Fiscal policy Government debt management Human capital Labor Public debt Public financial management (PFM)
English
Publication Date:
January 1, 1994
ISBN/ISSN:
9781451841978/1018-5941
Stock No:
WPIEA0041994
Pages:
36
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