Budgetary policies, foreign indebtedness, the stock market, and economic growth

被引:24
|
作者
vanderPloeg, F [1 ]
机构
[1] CEPR,TINBERGEN INST,THE HAGUE,NETHERLANDS
来源
OXFORD ECONOMIC PAPERS-NEW SERIES | 1996年 / 48卷 / 03期
关键词
D O I
10.1093/oxfordjournals.oep.a028574
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper analyses a small open economy with overlapping generations, endogenous growth, anti a risk premium on foreign debt. A balanced-budget increase in public consumption or a rise in government debt raises the ratio Of foreign debt to domestic income and the interest rare, but depresses economic growth, Supply-side policies aimed at internalising production externalities boost foreign indebtedness, the interest rate, and economic growth. A higher global interest rate leads, if initial foreign indebtedness is not too large, to a lower foreign debt and, if a country is dragged down by large levels of foreign debt, lower economic growth.
引用
收藏
页码:382 / 396
页数:15
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