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This paper uses the sequence of government budget constraints to motivate estimates of interest payments on the U …
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The ageing of the population presents a major fiscal challenge for the countries of Europe. The combination of increased longevity and a reduced birth rate will directly reduce the growth rates of the European economies by slowing the growth of the capital stock and by weakening the productivity...
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economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged … would have followed with primary budget balance and without the distortions in real interest rates caused by surprise …
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