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Sustainability of public debt

The development of public debt and budget deficits has become a cru-cial policy problem in most industrialized countries. 1 Political debatesabout the future course of fiscal policy and the need to keep govern-ment debt under control abound, and the sustainability of publicfinances is one of the most widely discussed topics in economics thesedays. In recent…

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Public Debt and the Price Level

This paper considers whether monetary and fiscal policy may sensibly be formulatedindependently of one another, and argues that the reasons for the two to be intercon-nected go well beyond the familiar but unappealing possibility of using seignorage asa source of revenue for the government. Particular attention is given to the effects of fiscal policy upon…

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