This paper investigates the long-run effects of public debt and inflation on economic growth. Our contribution is both … over the 1965-2010 period, we find significant negative long-run effects of public debt and inflation on growth. Our … results indicate that, if the debt to GDP ratio is raised and this increase turns out to be permanent, then it will have …

This paper studies the long-run impact of public debt expansion on economic growth and investigates whether the debt … for a universally applicable threshold effect in the relationship between public debt and economic growth, once we account … negative long-run effects of public debt build-up on output growth. Provided that public debt is on a downward trajectory, a …

We study how macroeconomic shocks affect U.S. public debt dynamics using a VAR with debt feedback. Following a fiscal … 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 …

Using the Reinhart-Rogoff dataset, we find a debt threshold not around 90 percent but around 30 percent above which the … between public debt and median real GDP growth. The null hypothesis of no threshold effect is rejected at the 5 percent … significance level for most cases. While we find no evidence of a threshold around 90 percent, our findings suggest that the debt …