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Interest Rate Risk and Other Determinants of Post-WWII US Government Debt/GDP Dynamics
Journal article   Open access   Peer reviewed

Interest Rate Risk and Other Determinants of Post-WWII US Government Debt/GDP Dynamics

George J Hall and Thomas J Sargent
American economic journal. Macroeconomics, Vol.3(3), pp.192-214
07/01/2011

Abstract

This paper uses a sequence of government budget constraints to motivate estimates of returns on the US Federal government debt. Our estimates differ conceptually and quantitatively from the interest payments reported by the US government. We use our estimates to account for contributions to the evolution of the debt-GDP ratio made by inflation, growth, and nominal returns paid on debts of different maturities. (JEL E23, E31, E43, G12, H63)
url
https://doi.org/10.1257/mac.3.3.192View
Published (Version of record) Open

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