Public debt and financial development: A theoretical exploration

Mustafa Ismihan () and Gulcin Ozkan

Economics Letters, 2012, vol. 115, issue 3, 348-351

Abstract: In countries where the government is the major recipient of bank lending, public debt is likely to harm financial development. Moreover, the lower the financial depth, the greater the adverse effects of public borrowing on financial development and macroeconomic outcomes.

Keywords: Financial development; Credit to government; Public debt (search for similar items in EconPapers)
JEL-codes: E52 E63 H63 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (15)

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Working Paper: Public debt and Financial development: A theoretical exploration (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:115:y:2012:i:3:p:348-351

DOI: 10.1016/j.econlet.2011.12.040

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