Economics, Econometrics and Finance
8 years ago

US Public Debt Behavior Could Impact Future Economic Stability

The Quarterly Journal of Economics
The Behavior of U. S. Public Debt and Deficits
Henning Bohn

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The article examines how U.S. public debt and deficits behave over time. The researchers analyzed data to understand the patterns and trends in these financial aspects. They found that deficits tend to increase public debt, but the relationship is not one-to-one. Instead, deficits have a long-lasting impact on debt, affecting it for many years. This study sheds light on the complex dynamics of public debt and deficits in the U.S. economy.