Public indebtedness, growth, currency and inflation: comment on “nice math”, by Gerson Lima - the reply

This paper aims at replying critical commentaries made by LEITE, F. P., AGGIO, G. O. e ANGELI, E. (this Review, 2009) on two Author’s theses. The first one states that, if public deficit is to be financed, then either interest rate applied is negative or government invests as if it where a profit-ma...

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Bibliographic Details
Author: Lima, Gerson
Format: article
Status:Published version
Publication Date:2009
Country:Brasil
Institution:EDITORA 34
Repository:Revista de Economia Política
Language:Portuguese
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/510
Online Access:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/510
Access Level:Open access
Keyword:debate público
política monetária
emissão de moeda
public debat
monetary policy
money issuing
Description
Summary:This paper aims at replying critical commentaries made by LEITE, F. P., AGGIO, G. O. e ANGELI, E. (this Review, 2009) on two Author’s theses. The first one states that, if public deficit is to be financed, then either interest rate applied is negative or government invests as if it where a profit-making business enterprise. Otherwise, public debt will mathematically follow an explosive trend. The second one says that if there is no debt and public deficit is paid with money issuing, then the monetary stock will tend to an equilibrium level. JEL Classification: E5; E6.