This paper revisits the issue of the Ricardian Equivalence Hypothesis (REH), as since its reemergence, its theoretically underlying premises have been called into question. Yet, severe criticism raised by its opponents concerning the efficacy of government actions has further challenged the need...

There is a growing literature of theoretical models and empirical advances that has led most researchers to subscribe to the view that national macroeconomic indicators are the crucial determinants of equilibrium interest rates. This paper revisits the causal structure linking the G7 long-term...