search query: @author Mankiw, N. G. / total: 9
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| Author: | Ball, L. Elmendorf, D. W. Mankiw, N. G. |
| Title: | The deficit gamble. |
| Journal: | Journal of Money, Credit and Banking
1998 : NOV, VOL.30:4, p. 699-720 |
| Index terms: | Fiscal policy National budgets Interest rates USA |
| Language: | eng |
| Abstract: | The authors state that the historical behavior of interest rates and growth rates in U. S. data suggests that the government can, with a high probability, run temporary budget deficits and then roll over the resulting government debt forever. The purpose of this article is to document this finding and to examine its implications. Using a standard overlapping-generations model of capital accumulation, they show that whenever a perpetual rollover of debt succeeds, policy can make every generation better off. This conclusion does not imply that deficits are good policy, for an attempt to roll over debt forever might fail. |
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