The author argues that, for any chosen level of the public debt, a consequent social burden arises as the tax-percentage of GNP that can be imposed to service the debt. In this way, there is an infinite number of steady-state paths that are sustainable (and each of them might well be different from one country to another). When considering Europe, the trouble is that the particular Maastricht couple of 3% Deficit/GNP and 60% Debt/GNP was chosen as a singularity, simply because at the time, those parameters characterized the German Economy.
|Numero di pagine||14|
|Rivista||Cambridge Journal of Economics|
|Stato di pubblicazione||Pubblicato - 1998|
- Public debt sustainability
- Situation of main EU countries at the end of 1996
- total indebtedness