Bericht
Government debt in times of low interest rates: the case of Europe
In this paper we discuss to what extent the declining difference between interest rates and growth rates (r-g) pointed out recently by Olivier Blanchard (2019) for the case of the US also characterizes the economic situation in Europe. We show that r-g has been positive on average but declining over the last decades in Europe as well. But r-g differs across considerably across European countries, and a continuation of current fiscal policies even under existing conditions would increase the debt ratios further in some countries. We conclude that the current low levels of r-g should be used to make progress in fiscal consolidation in countries with high debt levels. At the same time it would be desirable to benefit from the currently low interest rates to boost one time investment projects.
- Sprache
-
Englisch
- Erschienen in
-
Series: EconPol Policy Brief ; No. 16
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Fuest, Clemens
Gros, Daniel
- Ereignis
-
Veröffentlichung
- (wer)
-
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
- (wo)
-
Munich
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Bericht
Beteiligte
- Fuest, Clemens
- Gros, Daniel
- ifo Institute - Leibniz Institute for Economic Research at the University of Munich
Entstanden
- 2019
Ähnliche Objekte (12)
Applying nominal expenditure rules in the euro area
Impfstoffe: Wie man marktbasierte Anreize nutzt, um die Produktion hochzufahren
The insurance properties of common debt issuance
Banking union with a sovereign virus: The self-serving treatment of sovereign debt
Low Interest Rates and Public Borrowing
Becoming Slimmer: Why Europe Needs to Cut Debt and Reduce Leverage
High public debt in an uncertain world: Post-Covid-19 dangers for public finance
Financial Aspects of Central Bank Independence and Price Stability - The Case of Turkey
Understanding the Limitations of Maastricht
Reforming economic governance in the Eurozone: Shifting spending instead of expanding debt margins
Global welfare implications of carbon border taxes
Financial crisis: high cost of 'non Europe'
Applying nominal expenditure rules in the euro area
Impfstoffe: Wie man marktbasierte Anreize nutzt, um die Produktion hochzufahren
The insurance properties of common debt issuance
Banking union with a sovereign virus: The self-serving treatment of sovereign debt
Low Interest Rates and Public Borrowing
Becoming Slimmer: Why Europe Needs to Cut Debt and Reduce Leverage
High public debt in an uncertain world: Post-Covid-19 dangers for public finance
Financial Aspects of Central Bank Independence and Price Stability - The Case of Turkey
Understanding the Limitations of Maastricht
Reforming economic governance in the Eurozone: Shifting spending instead of expanding debt margins
Global welfare implications of carbon border taxes
Financial crisis: high cost of 'non Europe'
Applying nominal expenditure rules in the euro area
Impfstoffe: Wie man marktbasierte Anreize nutzt, um die Produktion hochzufahren
The insurance properties of common debt issuance
Banking union with a sovereign virus: The self-serving treatment of sovereign debt
Low Interest Rates and Public Borrowing
Becoming Slimmer: Why Europe Needs to Cut Debt and Reduce Leverage
High public debt in an uncertain world: Post-Covid-19 dangers for public finance
Financial Aspects of Central Bank Independence and Price Stability - The Case of Turkey
Understanding the Limitations of Maastricht
Reforming economic governance in the Eurozone: Shifting spending instead of expanding debt margins
Global welfare implications of carbon border taxes