haku: @journal_id 109 / yhteensä: 867
viite: 342 / 867
Tekijä: | Ploeg, F. van der |
Otsikko: | Budgetary policies, foreign indebtedness , the stock market, and economic growth |
Lehti: | Oxford Economic Papers
1996 : JUL, VOL. 48:3, p. 382-396 |
Asiasana: | STOCK MARKETS ECONOMIC GROWTH BUDGETING |
Kieli: | eng |
Tiivistelmä: | This paper analyses a small open economy with overlapping generations, endogenous growth, and a risk premium on foreign debt. A balanced-budget increase in public consumption or a rise in covernment debt raises the ratio of foreign debt to domestic income and the interest rate, but depresses economic growth. Supply-side policies aimed at internalising production externalities boost foreign indebtedness, the interest rate, and economic growth. A higher global interest rate leads, if initial foreign indebtedness is not too large, to a lower foreign debt and, if a country is dragged down by large levels of foreign debt, lower economic growth. |
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