Public Debt and Implicit Taxes: the Portuguese Experience

Braga de Macedo, Jorge; Sebastião, Manuel

http://hdl.handle.net/10362/84241

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Autores

Braga de Macedo, Jorge

Sebastião, Manuel

Resumo(s)

A high public debt often implies the willingness and the ability of the government to tax domestic residents implicitly rather than explicitly. For instance, in Italy, the Treasury has used the Central Bank to extract seignorage on a sustained basis. This mechanism need not eliminate the straightforward source of deficit financing in the "financial repression" literature, namely negative real interest rates. A decomposition of the growth of the real public debt in Portugal from 1976 to 1987 suggests the specific conditions of this "high public debt" country and the appropriate solutions. In this particular case, the solutions presented by the government do not seem sufficient to stabilize the debt-to-income ratio.

URI

http://hdl.handle.net/10362/84241

Citação

Braga de Macedo, Jorge and Sebastião, Manuel, Public Debt and Implicit Taxes: the Portuguese Experience (November, 1988). FEUNL Working Paper Series No. 97

Editora

Nova SBE

Coleções

NSBE - Working Paper Series

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