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A History of U.S. Debt Limits
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A History of U.S. Debt Limits

George J Hall and Thomas J Sargent
Vol.115(12)
NBER Working Paper Series, National Bureau of Economic Research
12/01/2015

Abstract

Development of the American Economy Economic Fluctuations and Growth Monetary Economics Political Economy
Congress first imposed an aggregate debt limit in 1939 when it delegated decisions about designing US debt instruments to the Treasury. Before World War I, Congress designed each bond and specified a maximum amount of each bond that the Treasury could issue. It usually specified purposes for which proceeds could be spent. We construct and interpret a Federal debt limit before 1939.

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