Offentlig gæld, makroøkonomien og generationsomfordeling

To prevent a long-term rise in the public clebt-to-GDP ratio in Denmark, a tighter fiscal policy is required. Against this background, the paper suggests a long-term strategy for debt reduction to be launched immediately. By levying a higher tax rate on consumption, rather than raising the wage tax, the adverse employment and output effects to be rather modest. Debt reduction is shown to redistribute welfare in favour of future generations, without necessarily harming the welfare of currently living generations.