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Public debt sustainability and endogenous seignorage in Brazil: time-series evidence from 1947-92

Using national accounts data for the revenue-GDP and expenditure GDP ratios from 1947 to 1992, we examine two central issues in public finance. First, was the path of public debt sustainable during this period? Second, if debt is sustainable, how has the government historically balanced the budget after hocks to either revenues or expenditures? The…

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Public Debt and the Limits of Fiscal Policy to Increase Economic Growth

Research that seeks to estimate the effects of fiscal policies on economic growth has ignored therole of public debt in this relationship. This study proposes a theoretical model of endogenous growth,which demonstrates that the level of the public debt-to-gross domestic product (GDP) ratio shouldnegatively impact the effect of fiscal policy on growth. This occurs because…

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