Interest rate risk and other determinants of post WWII U.S. government debt/GDP dynamics

George Hall and Thomas Sargent

No 1, Working Papers from Brandeis University, Department of Economics and International Business School

Abstract: This paper uses a sequence of government budget constraints to motivate estimates of returns on the U.S. Federal government debt. Our estimates differ conceptually and quantitatively from the interest payments reported by the U.S. 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.

Keywords: Holding period returns; capital gains; inflation; growth; debt- GDP ratio; government budget constraint (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-11
New Economics Papers: this item is included in nep-cba, nep-his and nep-mac
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Citations: View citations in EconPapers (19)

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http://www.brandeis.edu/economics/RePEc/brd/doc/Brandeis_WP01.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Interest Rate Risk and Other Determinants of Post-WWII US Government Debt/GDP Dynamics (2011)
Working Paper: Interest Rate Risk and Other Determinants of Post-WWII U.S. Government Debt/GDP Dynamics (2010)
Working Paper: Interest rate risk and other determinants of post WWII U.S. government debt/GDP dynamics (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:brd:wpaper:01

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