Wigger, Berthold U. <br/><br/>
A note on public debt, tax-exempt bonds, and Ponzi games 

 - [Washington]US  IMF  2007 
 - 18 p. 
<br/><br/> Demonstrates that government can run a Ponzi game if the economy without public debt is dynamically efficient.  This becomes possible when the return on private bonds or equity is taxed and the government issues tax-exempt bonds.  Notes that unlike a traditional Ponzi game, the welfare effects of a Ponzi game based on the issuance of tax-exempt bonds are rather mixed. 
<br/><br/><label>Universal Decimal Class. No.: </label>11.01.01 W655