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Interest Rate Risk and Other Determinants of Post-WWII U.S. Government Debt
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Interest Rate Risk and Other Determinants of Post-WWII U.S. Government Debt

George J Hall, Thomas J Sargent and National Bureau of Economic Research
NBER working paper series, Cambridge, Mass. National Bureau of Economic Research 2010
2011

Abstract

This paper uses the sequence of government budget constraints to motivate estimates of interest payments on the U.S. Federal government debt. We explain why our estimates differ conceptually and quantitatively from those reported by the U.S. government. We use our estimates to account for contributions to the evolution of the debt to GDP ratio made by inflation, growth, and nominal returns paid on debts of different maturities.

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