Evidence from a half century of experience by states identifies nonlinearities in the effects of debt and fiscal policy … on growth. Effects are Keynesian for low to moderate levels of debt and stimulus but anti Keynesian for sufficiently high … levels of debt or stimulus. Results are broadly consistent with models by Barro (1999), Judd (1987), and others. …

We study the dynamics of U.S. public debt in a parsimonious VAR. We find that including debt feedback ensures the … stationarity of debt while standard VARs excluding debt may imply an explosive debt path. We also find that the response of debt to … inflation increases debt while the same to interest rate decreases it. Positive shocks to growth and primary surplus …

In a recent paper, we studied economic growth and inflation at different levels of government and external debt. The … States), debt-growth causality (our book emphasizes the bi-directional nature of the relationship), as well as nonlinearities … in the debt-growth connection and thresholds evident in the data (absolutely central points that seem to have been lost …

) voluntary transfers of resources; 2) the debt crisis; 3) the securing of markets for developing countries' exports. …