On the sustainable deficit of the government

Alfred Greiner ()
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Alfred Greiner: Bielefeld University

Economics Bulletin, 2026, vol. 46, issue 1, 329 - 333

Abstract: In this note we derive the long-run public deficit to GDP ratio that is compatible with a sustainable public debt. Starting from the observation that a sustainable debt policy requires that the present value of public debt asymptotically converges to zero and that the debt to GDP ratio must be constant in the long-run, the deficit to GDP ratio is derived that meets these two conditions.

Keywords: Public deficit; public debt; sustainability (search for similar items in EconPapers)
JEL-codes: E6 H6 (search for similar items in EconPapers)
Date: 2026-03-30
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