Abstract
This paper develops an overlapping generations model to evaluate, first, the steady state growthmaximizing level of public debt around which the economy needs to stabilise; second, how the optimal level of public debt varies as a function of key population parameters; third, how fiscal rules designed to stabilise the economy around that debt level need to vary with the population parameters; and, fourth, how the model performs as a reasonable and plausible representation of the economies that we might be concerned with. Finally, following the diminished fiscal space and flexibility that is created by deteriorating population parameters, some political economy perspectives are offered.
| Original language | English |
|---|---|
| Title of host publication | 49th Annual Monetary Studies Conference : Repositioning Small States for New Global Realities: Book of Abstracts |
| Place of Publication | Kingston |
| Publisher | The University of the West Indies |
| Publication date | 2017 |
| Pages | 23 |
| Publication status | Published - 2017 |
| Event | The 49th Annual Monetary Studies Conference - Radisson Fort George Hotel and Marina, Belize City, Belize Duration: 8 Nov 2017 → 10 Nov 2017 Conference number: 49 http://www.ccmf-uwi.org/49th%20Annual%20Monetary%20Studies%20Conference |
Conference
| Conference | The 49th Annual Monetary Studies Conference |
|---|---|
| Number | 49 |
| Location | Radisson Fort George Hotel and Marina |
| Country/Territory | Belize |
| City | Belize City |
| Period | 08/11/2017 → 10/11/2017 |
| Internet address |
Keywords
- Fiscal rules
- Public debt
- Economic growth
- Demographic changes
