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| Alfred Greiner |
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| ''On the sustainable deficit of the government'' |
| ( 2026, Vol. 46 No.1 ) |
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| In this note we derive the long-run public deficit to GDP ratio that is compatible with a sustainable public debt. Starting from the observation that a sustainable debt policy requires that the present value of public debt asymptotically converges to zero and that the debt to GDP ratio must be constant in the long-run, the deficit to GDP ratio is derived that meets these two conditions. |
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| Keywords: Public deficit, public debt, sustainability |
JEL: H6 - National Budget, Deficit, and Debt: General
E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General |
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| Manuscript Received : Jan 10 2026 | | Manuscript Accepted : Mar 30 2026 |
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