Public debt and economic growth, one more time

Panizza, Ugo,  Presbitero, Andrea.

Are high levels of public debt harmful for economic growth? The very public Rogoff-Reinhart kerfuffle has focused on what is not true. This column reviews the evidence on what is true. It suggests that the debt-growth link is more complex than commonly thought. While there is evidence that public debt is negatively correlated with economic growth, there is no study that makes a strong case for a causal relationship going from debt to growth.

Πηγή: Voxeu

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