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The present book deals with the dynamics of public debt and economic growth. The analysis is conducted within the framework of endogenous growth theory. The government is in control of three instruments: the government purchase ratio, the deficit ratio and the tax rate. We assume that the purchase ratio is given exogenously. Then the government can follow either of two strategies, it fixes the deficit ratio or the tax rate. If the government fixes the deficit ratio, then according to the government budget constraint the tax rate will be endogenous. On the other hand, if the government fixes the tax rate, the deficit ratio will be endogenous.