Most advanced nations today are witnessing a peace-time public debt surge that match post World War levels. This raises concerns about fiscal financing and liquidation of the stock of debt specially in the face of changing demographics. United Kingdom being one of the advanced nations with a high level of public debt and an aging population is facing similar issues of fiscal financing. This pap...

This study aims to determine the effect of Current Ratio, Debt Equity and Return On Assets on Stock Returns in telecommunication services sub-sector companies listed Indonesia Exchange 2017-2021. research method is descriptive quantitative. data source uses secondary form financial statements from each telecommunications The used this multiple linear regression using EVIEWS 9 application. resul...

This paper proposes a theory of government debt which, as opposed to previous theories, delivers an interior steady state that is independent of initial debt. The key elements are nominal public debt and a benevolent government that cannot commit to future policy choices. Governments face a trade-off. On the one hand, they would like to increase the debt and delay taxation, so as to reduce curr...

The assignment in this report is motivated by the current financial crisis, which equally, or maybe even more accurately should be called a debt crisis. The research problem to be solved in this report is therefore to assess four conceptual different macroeconomic systems, including today’s Basel-type banking system, to find advantages and disadvantages in these systems compared to each other. ...

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The fiscal theory of the price level asserts that the price level is determined by the ratio of outstanding public nominal debt into the present value of real primary budget surpluses of the government. We here argue that price determinacy, in general, fails when at least part of the public debt takes the form of securities of infinite maturity. Indeed, price determinacy requires non-Ricardian ...

Using the Reinhart-Rogoff dataset, we find a debt threshold not around 90 per cent but around 30 per cent, above which the median real gross domestic product (GDP) growth falls abruptly. Our work is the first to formally test for threshold effects in the relationship between public debt and median real GDP growth. The null hypothesis of no threshold effect is rejected at the 5 per cent signific...

This study empirically examines whether managers manipulate reported income through the timing of sales of long-lived assets and investments. Several empirical implications of the income-smoothing and debt-equity hypothesis in the context of asset sales were tested. The findings are consistent with the timing of asset sales by managers so that the recognized accounting income from these sales s...