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• Yanushevsky, Camilla
• Yanushevsky, Rafael

The paper addresses a topical issue - how expansionary fiscal policy affects the debt to GDP ratio. It examines whether the projected future economic growth (stimulated by government spending) is sustained with the resulting nat iona l debt. It is discussedif government investment in infrastructure is an effective approach to boost the economy in times of economic downturn. The authors develop the debt to GDP ratio dynamics model and perform a series of simulations (based on US data) to forecast the evolution of the debt to GDP ratio over a 10-year horizon. It is shown that for the data characterizing the current state of the U.S. economy the government investment in infrastructure cannot decrease the debt to GDP ratio.

• Economics and Business

• Economic development
• Finance

debt dynamics, debt to GDP ratio dynamics, investment in infrastructure, stimulus

Περιέχει πίνακες και βιβλιογραφία

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