<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Some analyses examining the long-term sustainability of government debt use the term implicit government debt. This is an approach that is occasionally criticized. However, the concept of implicit government debt is necessary to evaluate the scope for long-term fiscal policy and to analyze the consequences of demographic change. Krämer and von Weizsäcker reject the assumption of a general positive interest rate-growth differential that is often made in these sustainability analyses. Priewe focuses on the controversy surrounding implicit government debt and explains a theory of interest rates that differs from Krämer and Weizsäcker but leads to similar results.</p>
</abstract>

Some analyses examining the long-term sustainability of government debt use the term implicit government debt. This is an approach that is occasionally criticized. However, the concept of implicit government debt is necessary to evaluate the scope for long-term fiscal policy and to analyze the consequences of demographic change. Krämer and von Weizsäcker reject the assumption of a general positive interest rate-growth differential that is often made in these sustainability analyses. Priewe focuses on the controversy surrounding implicit government debt and explains a theory of interest rates that differs from Krämer and Weizsäcker but leads to similar results.

Debt Sustainability With Implicit Government Debt: Replica and Rejoinder

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Schuldentragfähigkeit mit impliziten Staatsschulden: Replik und Erwiderung

Some analyses examining the long-term sustainability of government debt use the term implicit government debt. This is an approach that is occasionally...

Debt Sustainability With Implicit Government Debt: Replica and Rejoinder

Published Online: Jun 14, 2023

Page range: 341 - 351

DOI: https://doi.org/10.2478/wd-2023-0102

© 2023 Hagen Krämer et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.