The U.S. Public Debt: Implications for Growth

January 1, 1994

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Format: Chicago

Carlos M. Asilis The U.S. Public Debt: Implications for Growth, (USA: International Monetary Fund, 1994) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Current account deficits, Fiscal policy, Government debt management, Human capital, Labor, Public debt, Public financial management (PFM)

Keywords: Current account deficits, Economic growth rate, Effect calculation, GDP, GDP ratio, General government net debt, Government debt management, Growth discussion, Human capital, Interest rate, Net debt figure, Physical capital, WP

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/004
Stock No:

WPIEA0041994
ISBN:

9781451841978
ISSN:

1018-5941

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