TY  - JOUR
AU  - Dornbusch,Rudi
TI  - Debt and Monetary Policy: The Policy Issues
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5573
PY  - 1996
Y2  - May 1996
UR  - http://www.nber.org/papers/w5573
L1  - http://www.nber.org/papers/w5573.pdf
N1  - Author contact info:
Rudiger Dornbusch
AB  - The paper explores the implications of high debt for monetary policy.  In Europe, debt (and deficits) play a special role at present in the run up to Maastricht because large debts are seen as a threat to the integrity of the new European money.  The paper reviews two historical episodes-- the German, UK, and French experience in the 1920s and the US debt liquidation of the 1950-1980 period.  The theoretical review focuses on hypotheses of Keynes, Clark and Sargent- Wallace.  The paper adds to the range of concerns private balance sheet vulnerability.
ER  -