Understanding public debt dynamics
A brief account on the dynamics of public debt is given with the intent of explaining to high school students this crucial aspect in today's economic crisis. A simple model is proposed to argue that only for high enough values of an assumed constant rate ρ of increase of taxable resources there might exist a finite number of periods (years) for repaying an initial debt b0 contracted by a government with its reference national bank.
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| Main Author: | |
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| Format: | Digital revista |
| Language: | English |
| Published: |
Sociedade Brasileira de Física
2012
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| Online Access: | http://old.scielo.br/scielo.php?script=sci_arttext&pid=S1806-11172012000400007 |
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