Proaño, Christian R.; Schoder, Christian; Semmler, Willi - In: Journal of International Money and Finance 45 (2014) C, pp. 17-37
We analyze how the impact of a change in the sovereign debt-to-GDP ratio on economic growth depends on the level of debt, the stress level on the financial market and the membership in a monetary union. A dynamic growth model is put forward demonstrating that debt affects macroeconomic activity...