IDEAS home Printed from https://ideas.repec.org/a/ris/joeasd/0101.html
   My bibliography  Save this article

A Review of the Rise of the US Public Debt Limit: Selected Theoretical Contributions and Legislative Changes

Author

Listed:
  • Petar, KUREČIĆ

    (University North (CROATIA))

  • Filip, KOKOTOVIĆ

    (University North (graduate) (CROATIA))

  • Goran, BANDOV

    (Dag Hammarskjold University College of International Relations and Diplomacy (CROATIA))

Abstract

For the most of its history, the US public debt has neither been a factor that, aside from rare crisis periods, acted as a factor of significant worry, nor was it a topic present in relevant policy debates. A key element often overlooked in the debate regarding the long-term sustainability of the public debt of developed economies is the legal framework that should prevent macroeconomic imbalances. The aim of this paper is to assess, through theoretical argumentation, the historical significance of the public debt in the USA. The paper concludes that the USA requires a more coherent and precise legal framework that will ensure the long-term stability of the American economy.

Suggested Citation

  • Petar, KUREČIĆ & Filip, KOKOTOVIĆ & Goran, BANDOV, 2018. "A Review of the Rise of the US Public Debt Limit: Selected Theoretical Contributions and Legislative Changes," Journal of Economic and Social Development, Clinical Journals Press, vol. 5(02), pages 01-08, September.
  • Handle: RePEc:ris:joeasd:0101
    as

    Download full text from publisher

    File URL: https://www.jesd-online.com/dokumenti/upload/separated/EBOOK_Journal_CJ02_ART_4.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
    2. Eberhardt, Markus & Presbitero, Andrea F., 2015. "Public debt and growth: Heterogeneity and non-linearity," Journal of International Economics, Elsevier, vol. 97(1), pages 45-58.
    3. Karl Farmer & Matthias Schelnast, 2013. "Public Debt Reduction in Advanced Countries and Its Impact on Emerging Countries," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 167-188, May.
    4. Robert Blendon & John Benson, 2012. "The Public, Taxes, and the Fiscal Cliff," Challenge, Taylor & Francis Journals, vol. 55(6), pages 5-25.
    5. Barro, Robert J, 1979. "On the Determination of the Public Debt," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 940-971, October.
    6. Checherita-Westphal, Cristina & Rother, Philipp, 2012. "The impact of high government debt on economic growth and its channels: An empirical investigation for the euro area," European Economic Review, Elsevier, vol. 56(7), pages 1392-1405.
    7. Bettina Fincke & Alfred Greiner, 2015. "Public Debt and Economic Growth in Emerging Market Economies," South African Journal of Economics, Economic Society of South Africa, vol. 83(3), pages 357-370, September.
    8. James Crotty, 2009. "Structural causes of the global financial crisis: a critical assessment of the 'new financial architecture'," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(4), pages 563-580, July.
    9. Lance Taylor & Christian R. Proaño & Laura de Carvalho & Nelson Barbosa, 2012. "Fiscal deficits, economic growth and government debt in the USA," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(1), pages 189-204.
    10. Karl Farmer & Matthias Schelnast, 2021. "Public Debt Reduction in Advanced Countries and its Impacts on Emerging Countries," Springer Texts in Business and Economics, in: Growth and International Trade, edition 2, chapter 17, pages 397-424, Springer.
    11. Mencinger, Jernej & Verbic, Miroslav & Aristovnik, Aleksander, 2015. "Revisiting the role of public debt in economic growth: The case of OECD countries," MPRA Paper 67704, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. İbrahim Özmen & Mihai Mutascu, 2024. "Public Debt and Growth: New Insights," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8706-8736, June.
    2. Roberto Tamborini & Matteo Tomaselli, 2020. "When does public debt impair economic growth? A literature review in search of a theory," DEM Working Papers 2020/7, Department of Economics and Management.
    3. Roberto Tamborini, 2024. "Good Debt or Bad Debt?," CESifo Working Paper Series 11503, CESifo.
    4. César Fernando Reis & Jelson Serafim, 2018. "Growth and Debt in Angola at Provincial Level," CEsA Working Papers 172, CEsA - Center for African and Development Studies.
    5. Simón Sosvilla-Rivero & Marta Gómez-Puig, 2016. "“Debt-growth linkages in EMU across countries and time horizons”," IREA Working Papers 201610, University of Barcelona, Research Institute of Applied Economics, revised Apr 2016.
    6. Marta Gómez-Puig & Simón Sosvilla-Rivero, 2017. "Public debt and economic growth: Further evidence euro area," IREA Working Papers 201715, University of Barcelona, Research Institute of Applied Economics, revised Sep 2017.
    7. Coccia, Mario, 2017. "Asymmetric paths of public debts and of general government deficits across countries within and outside the European monetary unification and economic policy of debt dissolution," The Journal of Economic Asymmetries, Elsevier, vol. 15(C), pages 17-31.
    8. Luiggi Donayre & Ariuna Taivan, 2017. "Causality between Public Debt and Real Growth in the OECD: A Country-by-country Analysis," Economic Papers, The Economic Society of Australia, vol. 36(2), pages 156-170, June.
    9. Maria Manuel Campos & Cristina Checherita-Westphal, 2019. "Economic consequences of high public debt and challenges ahead for the euro area," Working Papers o201904, Banco de Portugal, Economics and Research Department.
    10. Vicente Esteve & Cecilio Tamarit, 2018. "Public debt and economic growth in Spain, 1851–2013," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 219-249, May.
    11. Qamar Abbas & Li Junqing & Muhammad Ramzan & Sumbal Fatima, 2021. "Role of Governance in Debt-Growth Relationship: Evidence from Panel Data Estimations," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    12. Grobéty, Mathieu, 2018. "Government debt and growth: The role of liquidity," Journal of International Money and Finance, Elsevier, vol. 83(C), pages 1-22.
    13. Olumide Olusegun Olaoye & Mosab I. Tabash & Olatunde Julius Omokanmi & Rotimi Ayoade Ogunjumo & Matthew Oyeleke Ojelade & James A. Ishola, 2022. "Macroeconomic implications of escalating stock of public debt: Evidence from sub‐Saharan African economies," African Development Review, African Development Bank, vol. 34(4), pages 527-540, December.
    14. Talknice Saungweme & Nicholas M. Odhiambo, 2019. "Does Public Debt Impact Economic Growth in Zambia? An Ardl-Bounds Testing Approach," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 53-73, October-D.
    15. Panizza, Ugo & Fatás, Antonio & Ghosh, Atish R. & ,, 2019. "The Motives to Borrow," CEPR Discussion Papers 13735, C.E.P.R. Discussion Papers.
    16. Qureshi, Irfan & Liaqat, Zara, 2020. "The long-term consequences of external debt: Revisiting the evidence and inspecting the mechanism using panel VARs," Journal of Macroeconomics, Elsevier, vol. 63(C).
    17. Alfred Greiner, 2020. "Public Debt in a Descriptive Endogenous Growth Model," Annals of Economics and Finance, Society for AEF, vol. 21(1), pages 173-187, May.
    18. Augustin, Patrick & Sokolovski, Valeri & Subrahmanyam, Marti G. & Tomio, Davide, 2022. "In sickness and in debt: The COVID-19 impact on sovereign credit risk," Journal of Financial Economics, Elsevier, vol. 143(3), pages 1251-1274.
    19. Mitchener, Kris & Trebesch, Christoph, 2021. "Sovereign Debt in the 21st Century: Looking Backward, Looking Forward," CEPR Discussion Papers 15935, C.E.P.R. Discussion Papers.
    20. Maurizio Intartaglia & Andreas Antoniades & Sambit Bhattacharyya, 2018. "Unbundled debt and economic growth in developed and developing economies: An empirical analysis," The World Economy, Wiley Blackwell, vol. 41(12), pages 3345-3358, December.

    More about this item

    Keywords

    public debt; legal framework; macroeconomic imbalances; the USA;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:joeasd:0101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marijan Cingula (email available below). General contact details of provider: http://www.eclinicalsci.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.