External debt of Indonesia: From debt-led growth to growth-led debt?

Demand-led growth with debt constraints: a Harrodian perspective

The paper explores the implications of different autonomous demands, with differing rates of growth, in a demand-led growth model where policy makers are concerned about the ratios of public sector debt to income and external debt to income. The actual growth rate is explained in terms of the growth rate of aggregate demand, with emphasis in the formation of expectations about growth in the lat...

Formalizing Debt-led and Debt-burdened Growth Regimes with Endogenous Macrodynamics of Minskian Financial Structure: A Long-run Analysis

In this paper, we formally derive a version of the Minskian taxonomy of the firms’ financial structure (hedge, speculative, and Ponzi types), under the economic growth context in the long run. As for the economic growth, we formalize the mechanism of debt-led (debt-burdened) growth where the economy expands as the debt variables increase (decrease). By explicitly introducing the relationship be...

Inequality, debt and growth

Foreword Like most economists, I internalised very early on in my career the concept of the "equity-efficiency tradeoff"; the idea that policy measures, such as progressive taxation or means-tested welfare benefits, that reduced income inequality would, because of their negative impact on incentives, be likely to reduce labour supply, effort and ultimately economic growth. At a theoretical leve...

Defense Expenditures, External Public Debt and Growth in Developing Countries

Growth Implosions and Debt Explosions: Do Growth Slowdowns Cause Public Debt Crises?

The worldwide growth slowdown after 1975 was a major negative fiscal shock; lower growth lowers the present value of tax revenues and primary surpluses and thus makes a given level of debt more burdensome. Most countries failed to adjust to the negative fiscal consequences of the growth implosion and so public debt to GDP ratios exploded. The growth slowdown therefore played an important role i...