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Uses and Limitations of Public Debt

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Book cover Market Behaviour and Macroeconomic Modelling

Abstract

This paper addresses three related issues. First, in what sense is the goverment’s ability to borrow limited by its capacity to tax? Second, when is Ponzi finance1 feasible for an infinite-lived government? Third, when does the opportunity to engage in Ponzi finance enhance the government’s ability to influence private resource allocation?

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Authors
  1. Willem H. Buiter
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  2. Kenneth M. Kletzer
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Editor information

Editors and Affiliations

  1. University of Groningen, The Netherlands

    Steven Brakman (Associate Professor), Hans van Ees (Professor of Economic Theory and Economic Education) & Simon K. Kuipers (Professor of Macroeconomic and Monetary Theory) (Associate Professor),  (Professor of Economic Theory and Economic Education) &  (Professor of Macroeconomic and Monetary Theory)

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© 1998 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Buiter, W.H., Kletzer, K.M. (1998). Uses and Limitations of Public Debt. In: Brakman, S., van Ees, H., Kuipers, S.K. (eds) Market Behaviour and Macroeconomic Modelling. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26732-3_11

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