Cover IMF Working Papers
The U.S. Public Debt: Implications for Growth
Author: Mr. Carlos M. Asilis
Series:
IMF Working Papers
Volume/Issue:
Volume 1994: Issue 004
Language:
English
Publication Date:
01 Jan 1994
DOI:
https://doi.org/10.5089/9781451841978.001
ISBN:
9781451841978
ISSN:
1018-5941
Pages:
36
Keywords:
WP; GDP ratio; GDP; interest rate; physical capital; growth discussion; General government net debt; economic growth rate; effect calculation; net debt figure; Human capital; Current account deficits; Government debt management
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund