Hasanov, Fuad; Cherif, Reda - International Monetary Fund (IMF) - 2012
austerity shock, the debt ratio initially declines and then returns to its pre-shock path. Yet, the effect is not statistically … times. An inflation shock only slightly reduces the debt ratio for a few quarters. A positive growth shock unambiguously …We study how macroeconomic shocks affect U.S. public debt dynamics using a VAR with debt feedback. Following a fiscal …