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Reducing high public debt ratios : lessons from UK experience
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Crafts, N. F. R. (2016) Reducing high public debt ratios : lessons from UK experience. Fiscal Studies, 37 (2). pp. 201-223. doi:10.1111/j.1475-5890.2015.12064 ISSN 0143-5671.
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Official URL: http://dx.doi.org/10.1111/j.1475-5890.2015.12064
Abstract
This paper examines contrasting experiences of the United Kingdom in addressing high public debt to GDP ratios following major wars. A clear message is that interest rate / growth rate differentials were more important than primary budget surpluses for the different outcomes. The debt to GDP ratio fell very rapidly under financial repression following the Second World War but remained stubbornly high despite large budget surpluses with price deflation after the First World War. Implications for policymakers today are that averting price deflation is a high priority and that supply-side policies that raise growth could play an important part in debt reduction.
Item Type: | Journal Article | ||||||||
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Subjects: | D History General and Old World > DA Great Britain H Social Sciences > HC Economic History and Conditions |
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | World War, 1914-1918 -- Economic aspects -- Great Britain , World War, 1939-1945 -- Economic aspects -- Great Britain , Budget deficits , Debts, Public, Interest rates , Gross domestic product, Economic development | ||||||||
Journal or Publication Title: | Fiscal Studies | ||||||||
Publisher: | Wiley-Blackwell Publishing, Inc | ||||||||
ISSN: | 0143-5671 | ||||||||
Official Date: | 6 June 2016 | ||||||||
Dates: |
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Volume: | 37 | ||||||||
Number: | 2 | ||||||||
Page Range: | pp. 201-223 | ||||||||
DOI: | 10.1111/j.1475-5890.2015.12064 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Date of first compliant deposit: | 17 August 2016 | ||||||||
Date of first compliant Open Access: | 23 December 2017 |
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