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Inflation And Public Debt Reversals In The G7 Countries

Inflation and Public Debt Reversals in the G7 Countries PDF

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Author: Mr. Bernardin Akitoby
Publisher: International Monetary Fund
ISBN: 1498316220
Size: 75.16 MB
Format: PDF, Docs
Category : Business & Economics
Languages : en
Pages : 28
View: 5501


This paper investigates the impact of low or high inflation on the public debt-to-GDP ratio in the G-7 countries. Our simulations suggest that if inflation were to fall to zero for five years, the average net debt-to-GDP ratio would increase by about 5 percentage points over the next five years. In contrast, raising inflation to 6 percent for the next five years would reduce the average net debt-to-GDP ratio by about 11 percentage points under the full Fisher effect and about 14 percentage points under the partial Fisher effect. Thus higher inflation could help reduce the public debt-to-GDP ratio somewhat in advanced economies. However, it could hardly solve the debt problem on its own and would raise significant challenges and risks. First of all, it may be difficult to create higher inflation, as evidenced by Japan’s experience in the last few decades. In addition, un-anchoring of inflation expectations could increase long-term real interest rates, distort resource allocation, reduce economic growth, and hurt the lower–income households.

Inflation And Public Debt Reversals In Advanced Economies

Inflation and Public Debt Reversals in Advanced Economies PDF

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Author: Ichiro Fukunaga
Publisher: International Monetary Fund
ISBN: 1513521594
Size: 75.22 MB
Format: PDF, ePub
Category : Business & Economics
Languages : en
Pages : 23
View: 5196


This paper quantitatively assesses the effects of inflation shocks on the public debt-to-GDP ratio in 19 advanced economies using simulation and estimation approaches. The simulations based on the debt dynamics equation and estimations of impulse responses by local projections both suggest that a 1 percentage point shock to inflation rate reduces the debt-to-GDP ratio by about 0.5 to 1 percentage points. The results also suggest that the impact is larger and more persistent when the debt maturity is longer, but the difference from the benchmark case is not significant. These results imply that modestly higher inflation, even if accompanied by some financial repression, could reduce public debt burden only marginally in many advanced economies.

Handbook Of Macroeconomics

Handbook of Macroeconomics PDF

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Author: John B. Taylor
Publisher: Elsevier
ISBN: 0444594779
Size: 36.34 MB
Format: PDF, ePub, Mobi
Category : Business & Economics
Languages : en
Pages : 1370
View: 4472


Handbook of Macroeconomics surveys all major advances in macroeconomic scholarship since the publication of Volume 1 (1999), carefully distinguishing between empirical, theoretical, methodological, and policy issues. It courageously examines why existing models failed during the financial crisis, and also addresses well-deserved criticism head on. With contributions from the world's chief macroeconomists, its reevaluation of macroeconomic scholarship and speculation on its future constitute an investment worth making. Serves a double role as a textbook for macroeconomics courses and as a gateway for students to the latest research Acts as a one-of-a-kind resource as no major collections of macroeconomic essays have been published in the last decade

The Unfulfilled Prime Minister

The Unfulfilled Prime Minister PDF

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Author: Peter Riddell
Publisher: Methuen Pub Limited
ISBN:
Size: 10.86 MB
Format: PDF
Category : Political Science
Languages : en
Pages : 238
View: 5751


Presents a dissection of Blair's exit strategy. This work includes an analysis of the Blair endgame. Despite a record third election victory, it provides an analysis of political unfulfillment.

Dissertation Abstracts International

Dissertation Abstracts International PDF

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Author:
Publisher:
ISBN:
Size: 31.59 MB
Format: PDF, ePub, Mobi
Category : Dissertations, Academic
Languages : en
Pages :
View: 4101



United Kingdom Staff Report For The Article Iv Consultation

United Kingdom  Staff Report for the     Article IV Consultation PDF

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Author:
Publisher:
ISBN:
Size: 13.13 MB
Format: PDF, Docs
Category : Great Britain
Languages : en
Pages :
View: 4548



Fabian Review

Fabian Review PDF

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Author:
Publisher:
ISBN:
Size: 36.13 MB
Format: PDF, Docs
Category : Socialism
Languages : en
Pages :
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Asian Development Outlook

Asian Development Outlook PDF

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Author:
Publisher:
ISBN:
Size: 39.75 MB
Format: PDF, ePub, Docs
Category : Asia
Languages : en
Pages :
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Current Account Reversals

Current Account Reversals PDF

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Author: Barry J. Eichengreen
Publisher:
ISBN:
Size: 75.61 MB
Format: PDF, Mobi
Category : Financial crises
Languages : en
Pages : 56
View: 6182


"Using panel data and case studies, we analyze the pre-1970 history of international capital flows and current account reversals. Considering a sample of emerging markets and advanced economies with per capita GDPs at least 60 per cent those of the lead country, we show that the incidence of reversals has been unusually great in recent years. The only prior period that matched the last three decades in terms of the frequency and magnitude of reversals was the 1920s and 1930s, decades notorious for the instability of capital flows. In contrast, reversals were both less common and smaller in the Bretton Woods and pre-World War I gold standard eras"--NBER website

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