33rd Annual Student Research Conference
Debt, Inflation, and Private Savings
Katie Alexander * and Olivia Howard
Dr. David Gillette, Faculty Mentor
The United States government’s public debt level is currently 106.7% of Gross Domestic Product (GDP), and experts predict the public debt will increase to 110.3% of GDP over the next five years. Scholars have studied the effects of public debt and generally conclude that above a certain “tipping point” of around 70-100%, public debt can impede economic growth. One debt reduction policy that has gained considerable political attention is reduction of the real value of the debt through inflation, although scholars debate whether inflation is a real solution to the debt crisis. Using empirical research methods, we examine the extent to which inflation would reduce the real value of the debt, and we further examine how inflation would harm individuals, private savings, and the economy as a whole.
Keywords: debt, inflation, savings
Topic(s):Economics
Presentation Type: Oral Presentation
Session: TBA
Location: TBA
Time: TBA