growth to a country. It is said that major macro variables such as GDP, Inflation, Interest Rate, and Current Account Balance …

inflation and the pre-Accord peg. In this counterfactual, debt/GDP declines only to 74% in 1974, not 23% as in actual history …The fall in the U.S. public debt/GDP ratio from 106% in 1946 to 23% in 1974 is often attributed to high rates of … economic growth. This paper examines the roles of three other factors: primary budget surpluses, surprise inflation, and pegged …