Gazioglu, Saziy; McCausland, W. David - In: Applied Economics Letters 7 (2000) 4, pp. 219-223
Many governments have a long-run target of lowering budget deficits in the future through current deficit spending, relying on economic growth to deliver their policy objective. This paper shows that this is unattainable under bond finance, since there exists no stable equilibrium. However, it...