Munich Personal RePEc Archive

Degrowth and sustainable public finance

Pasche, Markus (2018): Degrowth and sustainable public finance.

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Using well-known results from public debt dynamics, it is shown that in case of degrowth a sustainable public debt is very unlikely to achieve. Degrowth requires that negative real interest rates have to be maintained which might imply accelerated inflation, or other severe goal conflicts of public finance will result.

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