Publications
Publications
- April 2011 (Revised February 2013)
- HBS Case Collection
How Government Debt Accumulates
By: Dante Roscini and Jonathan Schlefer
Abstract
This note discusses the economics of government-debt accumulation. Fiscal deficits are only part of the picture; other factors include the level of debt as a percent of nominal GDP; the interest rate; the inflation rate; the growth rate; and changes in the exchange rate if some debt is owed in a foreign currency. The note discusses how these factors interact to affect government debt levels.
Keywords
Citation
Roscini, Dante, and Jonathan Schlefer. "How Government Debt Accumulates." Harvard Business School Background Note 711-087, April 2011. (Revised February 2013.)