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Deficit / interest rate comparison?
Hello all,
I was just wondering if anyone has any numbers, or can
at least point me to any numbers, that realte
long-term interest rates to the level of government
deficit spending. My macro textbook assumes, as a
matter of theory, that the "crowding out" mechanism
will cause there to be a lockstep relationship, but
has anyone actually done the empirical research?
Thanks,
Jim Baird
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