SUSTAINABLE PUBLIC DEBT IN THE ERA OF HIGH
INTEREST RATES: IS THE R–G PARADIGM STILL
RELEVANT?
SUSTAINABLE PUBLIC DEBT IN THE ERA OF HIGH
INTEREST RATES: IS THE R–G PARADIGM STILL
RELEVANT?
Author(s): Ljubomir Miljković, Dragana Trnavac, Adriana Jović BOGDANOVIĆSubject(s): Law, Constitution, Jurisprudence, Law on Economics, Administrative Law
Published by: Editura Universitatii Petrol-Gaze din Ploiesti
Keywords: public debt sustainability; r – g differential, stochastic simulations; monetary–fiscal interactions; fiscal dominance; VAR; Monte Carlo;
Summary/Abstract: This paper revisits public debt sustainability in a persistent high-interest-rate environment, challenging the conventional reliance on the interest-growth differential r - g as a sufficient condition for fiscal stability. While the post-global financial crisis period was marked by favourable borrowing conditions, the post-pandemic monetary tightening cycle has fundamentally altered the macroeconomic landscape, pushing many economies into a regime in which borrowing costs exceed growth rates.
Journal: Jurnalul de Drept si Stiinte Administrative
- Issue Year: 1/2026
- Issue No: 25
- Page Range: 102-116
- Page Count: 15
- Language: English
