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Financial repression lowers the return on government debt and contributes, all else equal, towards its liquidation. However, its full effect on the debt-to-GDP ratio hinges on how repression impacts the economy at large because it alters investment and saving decisions. We develop and estimate a...
Persistent link: https://www.econbiz.de/10014500970
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Financial repression lowers the return on government debt and contributes, all else equal, towards its liquidation. However, its full effect on the debt-to-GDP ratio hinges on how repression impacts the economy at large because it alters investment and saving decisions. We develop and estimate a...
Persistent link: https://www.econbiz.de/10014559288
Persistent link: https://www.econbiz.de/10012426771
This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness … (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily … and policies aimed to stimulate output growth dissipate into domestic currency depreciation and higher inflation, with …
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The study seeks to empirically test the hypothesis that public debt has a significant influence on inflation in … Zimbabwe, covering the period 1980-2020. The study was motivated by recent trends in public debt and domestic inflation in … Zimbabwe, and the need to guide debt-inflation related policy. These latest trends have started to ring alarming bells, which …
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