Public debt: a simple model

Pérsio Arida ()

Brazilian Journal of Political Economy, 1985, vol. 5, issue 4, 541-550

Abstract: A simple model is developed to deal with the financial dimension of the publicand its relation to external adjustment. The effects of an exchange devaluation, of an easingof the external restriction, and the role of fiscal policy under a wealth-effect intense enoughare discussed. Finally, a comment on the determinants of the rate of interest and its intertemporalaspects. JEL Classification: H62; H63.

Keywords: Public deficit; stabilization (search for similar items in EconPapers)
Date: 1985
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