
Y V Reddy
et al.
Published online:
25 November 2024
Published in print:
05 January 2025
Online ISBN:
9780198934288
Contents
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A Selective Review A Selective Review
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Mainstream Views Mainstream Views
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Short-Term versus Long-Term Impact of Public Debt Short-Term versus Long-Term Impact of Public Debt
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Barro-Ricardo Equivalence Barro-Ricardo Equivalence
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Non-Mainstream Views Non-Mainstream Views
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Empirical Evidence Empirical Evidence
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Chapter
8 Public Debt, National Income, and Growth
Get access
Pages
229–240
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Published:November 2024
Cite
Reddy, Y V, Partha Ray, and Pinaki Chakraborty, 'Public Debt, National Income, and Growth', Financial and Fiscal Policies: Crises and New Realities, Second Edition (Oxford , 2025; online edn, Oxford Academic, 25 Nov. 2024), https://doi.org/10.1093/9780198934288.003.0008, accessed 24 Apr. 2025.
Abstract
This chapter attempts a synoptic account of the economic theories underlying fiscal policy and public debt and its impact on national income and growth. Needless to say, this account is in the nature of a selective survey. This chapter highlights that all the major strands of economic theories failed to either explain or predict the crisis. Even the empirical academic literature is quite divided on the relationship between public debt and growth. Though we may not be able to infer a cohesive set of lessons, a selective review of relevant literature is attempted in view of its contemporary relevance.
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