000 00699nam a2200133Ia 4500
080 _a11.01.01 W655
100 _aWigger, Berthold U.
245 _aA note on public debt, tax-exempt bonds, and Ponzi games
260 _bIMF
_a[Washington]US
_c2007
300 _a18 p.
520 _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.
583 _c3/19/09
_kJOYD
942 _cM
_mW655
999 _c33836
_d33836