DiPietro, William R. - In: Journal of finance and investment analysis 2 (2013) 1, pp. 15-22
that increased public debt as a percentage of the economy reduces confidence in financial institutions. The second is that … increased public debt relative to the economy lowers economic expectations. If it is true that increased public debt reduces … public debt, but there will also be lower future economic growth. The findings of the paper are consistent with both …