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Fiscal Policy, Public Debt and the Term Structure of Interest Rates

  • Roland Demmel

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 476)

Table of contents

  1. Front Matter
    Pages I-X
  2. Roland Demmel
    Pages 1-29
  3. Roland Demmel
    Pages 169-203
  4. Roland Demmel
    Pages 205-228
  5. Back Matter
    Pages 265-282

About this book

Introduction

The introduction of the thesis consists of four parts: first, we motivate our chosen macroeconomic setting by looking at some real world phenomena. For a better understanding of these phenomena, we argue that the mutual dynamic interactions between flScal policy and financial markets need to be closely examined in a macroeconomic framework. Second, we review different strands of the economic literature in order to show that most of the literature has so far exclusively concentrated either on fmancial market dynamics or on flScal policy issues. We conclude that a more integrated model setting is called for in order to explain the dynamic interactions observed in reality. Third, we discuss at length the economic assumptions underlying our model. This avoids multiple repetition later on. Finally, we outline the structure of the thesis and the objectives we pursue in the different chapters. 1. 1 Motivation Fiscal policy and financial market reactions are increasingly receiving world­ wide attention. The most recent examples are the Maastricht criteria about flScal control, the South-East Asia financial crisis and the resulting IMF policy stance, the high level of public debt in developed and developing countries and the effect on interest rates and economic growth. In contrast to the still underdeveloped theoretical literature on these dynamic links, finding empirical evidence that supports the existence of these links is not a very hard task.

Keywords

Finance Financial Markets Finanzmärkte Fiscal Policy Fiskalpolitik Macroeconomic Dynamics Makroökonomische Dynamik Nichtlineare Zinsdynamik Nonlinear Interest Rate Dynamics Public Dept Staatsverschuldung

Authors and affiliations

  • Roland Demmel
    • 1
  1. 1.Institute of Public FinanceUniversity of SaarlandSaarbrückenGermany

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-642-58595-1
  • Copyright Information Springer-Verlag Berlin Heidelberg 1999
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Springer Book Archive
  • Print ISBN 978-3-540-66243-3
  • Online ISBN 978-3-642-58595-1
  • Series Print ISSN 0075-8442
  • Buy this book on publisher's site
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