Mainstream View

A DECADE OF DEBT

This paper presents evidence that public debts in the advanced economies have surged in recent years to levels not recorded since the end of World War II, surpassing the heights reached during the First World War and the Great Depression. At the same time, private debt levels, particularly those of financial institutions and households, are…

Περισσότερα
Mainstream View

Public debt and optimal taxes without commitment

Benhabib and Rustichini [Optimal taxes without commitment, J. Econ.Theory 77 (1997) 231–259] studythe properties of optimal capital taxes in economies without commitment and no government debt. Theyfind that capital taxes may be different from zero at steady state. This note shows that, once governmentshave the possibility of issuing debt and smoothing taxes over time, optimal…

Περισσότερα
Mainstream View

Sustainability of Greek Public Debt

On July 21, 2011, the heads of government of the euro area announced a new plan to address the Greek debt crisis. Tis policy brief presents a simulation exercise that examines whether the new arrangements are likely to provide a sustain-able solution. Te analysis focuses on four key measures: gross debt relative to GDP; net…

Περισσότερα