IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-76295-7_12.html
   My bibliography  Save this book chapter

Sovereign Finance: When Economic Growth and Sovereign Debt Are a Mismatch

In: Financial Markets and Economic Performance

Author

Listed:
  • John E. Silvia

Abstract

The imbalance between the federal debt burden and economic growth was evident in the experience of Germany in the early post-WWI period. Private sector demand for sovereign debt is a function of expectations of income, expected real returns exchange rates, and the availability of alternative financial returns. On the supply side, the supply of sovereign debt as a function of perceived policy desires and any limits that may arise from the cost of finance. Today, the three biggest holders of U.S. Treasury debt are the Fed and the central banks of China and Japan. These institutions are not motivated by maximizing profit nor do they mark to market their sovereign debt portfolios. The grand assumption that federal spending is costless has failed to hold. The ability of the sovereign to issue debt has faced limits. Two failures were for France and John Law and the United Kingdom after WWI.

Suggested Citation

  • John E. Silvia, 2021. "Sovereign Finance: When Economic Growth and Sovereign Debt Are a Mismatch," Springer Books, in: Financial Markets and Economic Performance, chapter 0, pages 403-440, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-76295-7_12
    DOI: 10.1007/978-3-030-76295-7_12
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:sprchp:978-3-030-76295-7_12. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.