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Public Wealth in the United States

Author

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  • Mr. Fabien Gonguet
  • Klaus-Peter Hellwig

Abstract

We analyze the US public sector balance sheet and project it forward under the assumption that current policies remain in place. We first document the history of the balance sheet and its components since World War II, with a detailed account of its evolution during and after the global financial crisis. While, based on assets and liabilities alone, public sector net worth is negative, additional challenges arise from commitments to future spending implied by current legislation and demographic trends. To quantify the risks to the balance sheet, we then apply the macroeconomic scenarios from the Federal Reserve’s bank stress test to the public sector balance sheet.

Suggested Citation

  • Mr. Fabien Gonguet & Klaus-Peter Hellwig, 2019. "Public Wealth in the United States," IMF Working Papers 2019/139, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2019/139
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    References listed on IDEAS

    as
    1. Olivier Blanchard, 2019. "Public Debt and Low Interest Rates," American Economic Review, American Economic Association, vol. 109(4), pages 1197-1229, April.
    2. repec:cbo:report:521421 is not listed on IDEAS
    3. International Monetary Fund, 2015. "United States: Financial Sector Assessment Program-Stress Testing-Technical Notes," IMF Staff Country Reports 2015/173, International Monetary Fund.
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    5. Nicoletta Batini & Mr. Luc Eyraud & Lorenzo Forni & Miss Anke Weber, 2014. "Fiscal Multipliers: Size, Determinants, and Use in Macroeconomic Projections," IMF Technical Notes and Manuals 2014/004, International Monetary Fund.
    6. David Amaglobeli & Wei Shi, 2016. "How to Assess Fiscal Implications of Demographic Shifts: A Granular Approach," IMF Fiscal Affairs Department 2016/002, International Monetary Fund.
    7. Congressional Budget Office, 2016. "Options for Reducing the Deficit: 2017 to 2026," Reports 52142, Congressional Budget Office.
    8. Congressional Budget Office, 2015. "Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output in 2014," Reports 49958, Congressional Budget Office.
    9. Nicoletta Batini & Luc Eyraud & Lorenzo Forni & Anke Weber, 2014. "Fiscal Multipliers; Size, Determinants, and Use in Macroeconomic Projections," IMF Technical Notes and Manuals 14/04, International Monetary Fund.
    10. Congressional Budget Office, 2016. "Options for Reducing the Deficit: 2017 to 2026," Reports 52142, Congressional Budget Office.
    11. Congressional Budget Office, 2015. "Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output in 2014," Reports 49958, Congressional Budget Office.
    12. David Amaglobeli & Wei Shi, 2016. "How to Assess Fiscal Implications of Demographic Shifts; A Granular Approach," IMF Fiscal Affairs Department 16/02, International Monetary Fund.
    13. International Monetary Fund, 2015. "Norway: Financial Sector Assessment Program-Technical Note- Stress Testing the Banking Sector," IMF Staff Country Reports 2015/258, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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