Debt and Monetary Policy: The Policy Issues

The paper explores the implications of high debt for monetary policy. In Europe, debt (and deficits) play a special role at present in the run up to Maastricht because large debts are seen as a threat to the integrity of the new European money. The paper reviews two historical episodes-- the German, UK, and French experience in the 1920s and the US debt liquidation of the 1950-1980 period. The theoretical review focuses on hypotheses of Keynes, Clark and Sargent- Wallace. The paper adds to the range of concerns private balance sheet vulnerability.

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Year of publication:	1996-05
Authors:	Dornbusch, Rudi
Institutions:	National Bureau of Economic Research (NBER)

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Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	IFM ME published as Calvo, Guillermo and Mervyn King. The debt burden and its consequences for monetary policy: Proceedings of a conference held by the International Economic Association at the Deutsche Bundesbank, Frankfurt, Germany, IEA Conference Volume, no. 118. New York: St. Martin's Press; London: Macmillan Press; in association with the International Economic Association, 1998. Number 5573
Classification:	E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005720368