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Public debt: a simple model

Author

Listed:
  • Pérsio Arida

Abstract

A simple model is developed to deal with the financial dimension of the publicand its relation to external adjustment. The effects of an exchange devaluation, of an easingof the external restriction, and the role of fiscal policy under a wealth-effect intense enoughare discussed. Finally, a comment on the determinants of the rate of interest and its intertemporalaspects. JEL Classification: H62; H63.

Suggested Citation

  • Pérsio Arida, 1985. "Public debt: a simple model," Brazilian Journal of Political Economy, Center of Political Economy, vol. 5(4), pages 541-550.
    • Handle: RePEc:ekm:repojs:v:5:y:1985:i:4:p:541-550:id:1865
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1865/1851
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    More about this item

    Keywords

    Public deficit; stabilization;

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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