Government debt, growth and inequality in income distribution: a postkeynesian analysis

The paper examines the relationship between the rate of growth, government debt and government deficit in a postkeynesian model of growth and distribution. It reaches several analytical results pointing out under which conditions an increase in the government deficit may generate a higher rate of growth of the economy. The paper also underlines that the effects outlined depend on how the government policy act on the distribution of income and through that on aggregate demand.