Acharya, Viral V.; Rajan, Raghuram G.; Shim, Jack - 2021
the dynamics of a country’s growth, consumption, and sovereign debt, assuming that the government is myopic and wants to … higher steady-state household consumption than if it could not borrow. However, in a developing country that saves little … governments repress as well. This leads to a “growth trap” where household steady-state consumption is lower than if the …