Reisen, Helmut (contributor); Grandes, Martín (contributor) - 2005
real income. As a result, demand increases for all goods,
raising the full‐employment real prices of both home manufactures and services.
Higher growth prospects in the capital … interest rates, and
if these trigger a higher US dollar, on the local‐currency equivalent of debt stocks.
In … any case, at some point OECD public debt rises to such an extent that a withdrawal of
the initial fiscal stimulus and higher real rates of interest are likely to result (IMF, 2004). This has
important effects on balance sheets in …