ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

How Much Public Debt Is Too Little?

Virtually, the entire literature on public debt is on determining “how much is too much,” beyond which it becomes a systemic threat to the economy. On this basis, about 80 countries, including India, have fiscal rules designed to steadily reduce public debt. This article argues that there is a minimum stock of public debt, below which it is also a systemic threat, and outlines some of the considerations which should be taken into account. It further argues that the composition of public debt is equally important, but has been totally neglected. Both the level and composition of public debt, therefore, should be taken into account while framing fiscal rules.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

826for India

$50for overseas users

Get instant access to the complete EPW archives

Subscribe now

Updated On : 12th Jul, 2019

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top