In studies concluding that public debt may hamper GDP growth, the debt tipping effects are estimated as if there were a single global currency. This means that such studies ignore the likely biggest cause of changes in growth rates, namely damage from exchange rate liquidity shocks because we do...

Abstract AbstractAngesichts diverser EURO-Rettungsschirme und der Sorge um den Verlust eigenen Wohlstands durch Umverteilung staatlicher Einnahmen zu Gunsten anderer EURO-Länder einerseits und der Entwertung privater Ersparnisse durch Ausweitung der Geldmenge andererseits, befürchten Bürger...

South Africa is a developing country faced with diverse challenges like high unemployment, poverty, inequality and low economic growth. In an attempt to address these issues, government can embark on borrowing and incur public debt. Countries that run large persistent public debt signal negative...