Theoretical and Applied Economics
No. 2 / 2025 (643), Summer
Government debt service, interest rates, and macroeconomic stability: a conceptual approach
University of Tennessee, United States of America
G. Jason JOLLEY
Ohio University, United States of America
Kamal P. UPADHYAYA
University of New Haven, United States of America
Franklin G. MIXON Jr.
Columbus State University, United States of America
Abstract. The U.S. national debt exceeded $1 trillion, driven by COVID-19 spending and military conflicts. Debt service payments rose 80.4% in four years, from $521 billion to $940 billion. This paper presents a macroeconomic model analyzing the monetary policy’s impact on debt service and national debt growth. Federal spending is divided into real expenditures on goods/services and interest-sensitive debt payments. The model suggests that if the interest sensitivity of debt payments surpasses that of household/business spending, expansionary monetary policy results in a negative macroeconomic multiplier, posing significant challenges for policymakers amidst growing debt service obligations.
Contents
A bibliometric analysis on inequalities in higher education in the age of educational expansion
Trending over thinking – quick fame, quiet genius: the bad habits of social media
Understanding the impact of artificial intelligence on the stock market development in BRICS nations: a panel ARDL method
A comparative analysis of development in SAARC countries in the relation of sustainable development – taxonomic analysis
Complementary relationship between foreign direct investment, financial development threshold and economic growth: evidence from Sub-Saharan Africa
Artificial intelligence as a disruptive force in economics: transformations, challenges, and future prospects
The main drivers of labour cost dynamics in Central and Eastern European countries
Government debt service, interest rates, and macroeconomic stability: a conceptual approach
Shaping health systems through strategy and economics: a global bibliometric exploration of policy pathways
Energy and economics: an empirical study on the global economic impact of energy crisis
Monetary policy, inflation, and exchange rate dynamics: evidence from the Turkish economy (2001-2023)
The impact of public spending on the inflation rate in Algeria: an econometric study for the period 2000-2023
Analyze the environmental sustainability factors in India: the role of ecological footprint and CO2 emission
Implications of monetary and fiscal policy shocks: evidence from an Eastern European economy
From e-government to efficient transport: investigating Romania’s digital leverage in logistics
Impact of ICT adoption on the food security of agricultural households in Burkina Faso
Greek tax policy and macroeconomic framework after the political transition, a systematic approach
Is Balance of Payments a monetary phenomenon: doctrinal aspects and empirical evidence from India
Neuroeconomics in the Age of AI: how machine learning alters human decision-making at the neural level
Analysis of the relationship between the optimal level of public spending and economic growth Evidence and experimental study on Algeria