Economics, Econometrics and Finance
8 years ago

Government debt hinders economic growth in most G7 countries, study finds.

SSRN Electronic Journal
Are Government Bonds Net Wealth? Some Empirical Evidence
Tito Belchior Silva Moreira, Geraldo da Silva e Souza, Fernando Antônio Ribeiro Soares

Paper Summary

The article investigates how government debt affects economic growth in G7 countries from 1990 to 2008. The study shows that only Germany has a negative link between public debt and growth, while the US and France have a balanced relationship. On the other hand, the UK, Japan, Italy, and Canada have a positive connection between government debt and economic growth.

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