Volume 13 (2013)
Volume 12 (2012)
Volume 11 (2011)
Volume 10 (2010)
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Volume 6 (2006)
Volume 5 (2005)
Volume 4 (2004)
Volume 3 (2003)
Volume 2 (2002)
Most Downloaded Articles
- Comparing Wealth Effects: The Stock Market versus the Housing Market by Case, Karl E./ Quigley, John M. and Shiller, Robert J.
- Who Gets the Credit? And Does It Matter? Household vs. Firm Lending Across Countries by Beck, Thorsten/ Büyükkarabacak, Berrak/ Rioja, Felix K. and Valev, Neven T.
- Monetary and Macroprudential Policy Rules in a Model with House Price Booms by Kannan, Prakash/ Rabanal, Pau and Scott, Alasdair M.
- Is Discretionary Fiscal Policy in Japan Effective? by Rafiq, Sohrab
- In search of lost time: the neoclassical synthesis by De Vroey, Michel and Duarte, Pedro Garcia
Dynamic Efficiency, the Riskless Rate, and Debt Ponzi Games under Uncertainty
1MIT and NBER, firstname.lastname@example.org
2Université Libre de Bruxelles (ECARES), CEPR and NBER, Philippe.Weil@ulb.ac.be
Citation Information: Advances in Macroeconomics. Volume 1, Issue 2, Pages –, ISSN (Online) 1534-6013, DOI: 10.2202/1534-6013.1031, November 2001
- Published Online:
In a dynamically efficient economy, can a government roll its debt forever and avoid the need to raise taxes? In a series of examples of economies with zero growth, this paper shows that such Ponzi games may be infeasible even when the average rate of return on bonds is negative, and may be feasible even when the average rate of return on bonds is positive. The paper then reveals the structure which underlies these examples.