: the primary balance, real GDP growth, real interest rates, and exchange rates. We study New Zealand's debt dynamics over …), while the automatic debt dynamics (the interest-growth differential and exchange rates) are relatively benign. …This paper develops a framework to decompose the change in New Zealand's public debt ratio into four component effects …

. This divergence from the Ricardian equivalence thesis is traced to the omission of interest payments on public debt as part …

Low natural real interest rates limit the power of monetary policy to revive the economy due to the zero lower bound … (ZLB) on the nominal interest rate. Fiscal stabilization via higher government debt is frequently recommended as a policy … with a debtfinanced fiscal expansion and show that even in a low real interest rate environment, higher debt doesn …