Publication:
Public Debt, Secular Stagnation, and Functional Finance

Simple item page
dc.contributor.authorSkott, Peter
dc.contributor.departmentUniversity of Massachusetts - Amherst
dc.date2023-09-23T13:13:09.000
dc.date.accessioned2024-04-26T16:30:41Z
dc.date.available2024-04-26T16:30:41Z
dc.date.issued2015-01-01
dc.description.abstractFiscal policy and public debt may be required to maintain full employment and avoid secular stagnation. This conclusion emerges from a range of different models, including OLG specifications and stock-flow consistent (post-) Keynesian models. One of the determinants of the required long-run debt ratio is the rate of economic growth. Low growth leads to high debt, and empirical correlations between growth and debt may reflect this causal effect of growth on debt, rather than negative effects of debt on growth. A second result relates directly to austerity policies. The level of government consumption and the structure of taxation influence the required debt ratio and, paradoxically, austerity policies are counterproductive on their own terms: cuts in government consumption lead to an increase in the required level of debt.
dc.identifier.doihttps://doi.org/10.7275/7565623
dc.identifier.urihttps://hdl.handle.net/20.500.14394/22156
dc.relation.urlhttps://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1192&context=econ_workingpaper&unstamped=1
dc.source.issue2015-12
dc.source.statuspublished
dc.subjectfunctional finance
dc.subjectzero lower bound
dc.subjectliquidity trap
dc.subjectfiscal policy
dc.subjectsecular stagnation
dc.subjectausterity
dc.subjectpublic debt
dc.subjectEconomics
dc.titlePublic Debt, Secular Stagnation, and Functional Finance
dc.typearticle
dc.typearticle
digcom.contributor.authorisAuthorOfPublication|email:pskott@econs.umass.edu|institution:University of Massachusetts - Amherst|Skott, Peter
digcom.identifierecon_workingpaper/185
digcom.identifier.contextkey7565623
digcom.identifier.submissionpathecon_workingpaper/185
dspace.entity.typePublication
relation.isAuthorOfPublication9fbadb4c-714f-4bf3-9344-2ac3851cd2e8
relation.isAuthorOfPublication.latestForDiscovery9fbadb4c-714f-4bf3-9344-2ac3851cd2e8
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
2015_12.pdf
Size:
297.77 KB
Format:
Adobe Portable Document Format
Thumbnail Image
Name: 2015_12.pdf
Size: 297.77 KB
Kind: Adobe PDF
Collections
Economics Department Working Paper Series