Le coût réel de la dette publique

François Facchini

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Abstract: This article criticizes the idea that public debt is not a problem because interest rates are negative or zero. Blanchard's (2019) position sees the fall in debt service costs, but does not see the other costs of debt. The decrease in debt service costs is not without cost. The forced solvency of States (i) favours a flight of income to foreigners who hold the debt, (ii) is paid by low incomes via taxes (the poor pay for the rich), (iii) creates the conditions for a class of state rentiers and for crowding out effects, (iv) does not encourage state reform and a reduction in unproductive expenditure, (v) and forces the central bank to reduce interest rates, which will have long-term effects on the structure of savings.

Keywords: public debt; inequality; Montesquieu; Say; tax; debt sustainability (search for similar items in EconPapers)
Date: 2020-07
Note: View the original document on HAL open archive server: https://hal.science/hal-03195337
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Published in 2020, pp.123-142

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Working Paper: Le coût réel de la dette publique (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03195337

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