Interest rate risk and other determinants of post-WWII US government Debt/GDP dynamics

George J. Hall, Thomas J. Sargent

    Research output: Contribution to journalArticlepeer-review

    Abstract

    This paper uses a sequence of government budget constraints to motivate estimates of returns on the US Federal government debt. Our estimates differ conceptually and quantitatively from the interest payments reported by the US government. We use our estimates to account for contributions to the evolution of the debt-GDP ratio made by inflation, growth, and nominal returns paid on debts of different maturities.

    Original languageEnglish (US)
    Pages (from-to)192-214
    Number of pages23
    JournalAmerican Economic Journal: Macroeconomics
    Volume3
    Issue number3
    DOIs
    StatePublished - Jul 2011

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

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