Debt growth and economic growth: public debt and inflation thresholds analysis since 2000

Crawford School of Public Policy
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Event details

PhD Seminar (Econ)

Date & time

Friday 30 April 2021


Weston Theatre , Crawford School of Public Policy, No 132, Lennox Crossing, The ANU


Taehyun Ryu

Increasing government spending doesn’t grow the economy, at least in the short term, but rather debt growth hinders economic growth. Many studies that applied the threshold models show that the debt has a negative effect when the debt is above the threshold level. However, this study argues that the increase in government debt is negatively correlated with the growth rate regardless of the level of debt and inflation, based on data since 2000. And the estimates of the FE panel threshold and dynamic panel threshold models indicate that the negative effect of debt growth is higher in the upper regime.

Updated:  29 June 2022/Responsible Officer:  Crawford Engagement/Page Contact:  CAP Web Team