Article ID Journal Published Year Pages File Type
5060582 Economics Letters 2012 4 Pages PDF
Abstract
► We examine the role of public debt in financial development. ► Public debt may harm financial development if government borrows heavily from the banking sector. ► The lower the financial depth, the greater the adverse affects of public borrowing. ► Our results provide an alternative explanation for 'contractionary fiscal expansions'.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Public debt and financial development: A theoretical exploration
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