Munich Personal RePEc Archive

An Empirical Comparison of Interest and Growth Rates

Knolle, Julia (2014): An Empirical Comparison of Interest and Growth Rates.

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This paper investigates methods of assessing dynamic efficiency, points out their shortcomings and develops a new criterion of determining whether or not an economy accumulates too much capital. This criterion is then applied to the OECD countries as well as China. The analysis sheds a new light on recent proposals of raising public debt levels during a time of low interest rates.

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