Despite clear danger and explicit warnings, the United States of America-distracted by short-term challenges and its own political dysfunction-is steaming toward its own collision, one with long-term debt. Philanthropist, businessman, and former secretary of commerce Peter G. Peterson argues...

Against the commonly accepted view that in the run-up to EMU the Maastricht fiscal restraints were quite effective in re-aligning public finances in Member States that were showing large excessive deficits, Strauch and von Hagen stress that there are some objections concerning this initial sign...

This study further contributes to the literature by applying ARDL and error correction models to the U.S. data between 1973 and 2010 to find the relationship and the effect of the U.S. budget deficit and inflation on the exchange rate. The conclusions reveal that there is a significant...

This paper develops a 2-country New Keynesian overlapping generations model suitable for the joint evaluation of monetary and fiscal policies. We show that a permanent increase in U.S. government deficits raises the world real interest rate and significantly increases U.S. current account...

This study of regular patterns of the U.S. Federal debt concludes that recent Federal deficits were abnormally large by historical standards. During most of the post-war period, fluctuations of the real debt reflected the following three factors: cyclical fluctuations of real GNP; transitory...