00646nam a2200109Ia 4500080001800000100002400018245006100042260003000103300001000133520037500143583001800518  a11.01.01 W655  aWigger, Berthold U.  aA note on public debt, tax-exempt bonds, and Ponzi games  bIMFa[Washington]USc2007  a18 p.  aDemonstrates 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.  c3/19/09kJOYD