A brief account on the dynamics of public debt is given with the intent of explaining to high school students this crucial aspect in today's economic crisis. A simple model is proposed to argue that only for high enough values of an assumed constant rate of increase of taxable resources there might exist a nite number of periods (years) for repaying an initial debt b0 contracted by a government with its reference national bank.
Understanding public debt dynamics
DE LUCA, Roberto
2012-01-01
Abstract
A brief account on the dynamics of public debt is given with the intent of explaining to high school students this crucial aspect in today's economic crisis. A simple model is proposed to argue that only for high enough values of an assumed constant rate of increase of taxable resources there might exist a nite number of periods (years) for repaying an initial debt b0 contracted by a government with its reference national bank.File in questo prodotto:
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