The Debt-Stabilising Primary Surplus
This lesson is part of the course
In this lesson
You calculate, for five Valdoria scenarios, the primary balance that keeps the debt ratio constant, compare it with the plan, label the outcome and project next year's debt ratio.
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Lessons in this course
- Government Revenue & Spending by Category, as % of GDP Locked
- Primary vs Overall Budget Balance Locked
- Debt Dynamics: d(t) = d(t−1)·(1+r)/(1+g) − pb Locked
- The Debt-Stabilising Primary Surplus Locked
- Progressive Income Tax: Marginal vs Average Rates with a Bracket Table Locked
- Tax Buoyancy, Tax Elasticity & a Revenue Forecast Locked
- Public Investment Appraisal: Social NPV & the Discount Rate Locked
- Budget Variance Analysis & a Fiscal Rules Check Locked