Kliem, Martin; Kriwoluzky, Alexander; Müller, Gernot J.; … - 2024
Financial repression lowers the return on government debt and contributes, all else equal, towards its liquidation …. However, its full effect on the debt-to-GDP ratio hinges on how repression impacts the economy at large because it alters … model-based counterfactual shows that GDP would have been 5 percent lower, and the debt-to-GDP ratio 20 percentage points …