public debt

Interest Rate, Growth And Debt Sustainability

7 April 2015

Frequently, discussions about debt sustainability have discussions about the importance of the interest rate and growth in debt sustainability analysis. See for example, today’s Paul Krugman’s post on his blog. It is concluded that as long as the rate of interest is below the rate of growth, the ratio public debt/gdp doesn’t explode. Unfortunately, this […]


The Monetary Economics Of Sovereign Government Rating

4 May 2012

If a government (outside monetary unions) can make a draft at the central bank, why do rating agencies rate governments’ creditworthiness? In this post, I will attempt to describe the dynamics of defaults and restructurings by going through some monetary economics of open economies. Carmen Reinhart and Kenneth Rogoff wrote a book in 2009 titled This […]


James Tobin On Public Debt

18 January 2012

James Tobin was one of the greatest economists. He had stock-flow consistency, understood how the monetary and financial system worked and had great ideas on open economy macroeconomics. However, he struggled to express his ideas at a more formal level, especially since he used some neoclassical formalism. This post may be of interest to Neochartalists. […]


Holders Of Italy’s Public Debt And Government Securities

11 November 2011

Banca d’Italia – Italy’s National Central Bank – released its Financial Stability Report, Nov 2011 recently. With movements in Italian government bond yields making headlines, the following graphs from the report might be useful. (Click to enlarge) Lots of foreigners = lots of trouble!


Chart: Eurozone Indebtedness

7 August 2011

The Euro Zone is under a crisis. Is there a chart which shows what the underlying factor is which makes the difference ? Below: You can see that the external situation is clearly the one which makes the difference as opposed to the public debt. It’s true that Belgium’s bond market is under pressure – […]