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average cA(t capita government debt capita public debt capital accumulation capital per head CEPR Discussion Papers constant capital consumption and capital consumption and external cR(t depicted in Figure Economic Policy Research equation equilibrium equilibrium real exchange rate regimes external assets fiscal policies fixed exchange rates foreign assets gA(t government bonds government expenditure higher external debt higher public debt higher steady household assets implications Klundert LDC Debt lower capital stocks marginal product monetary finance money demand nominal interest rate OECD output Ploeg public debt financed public debt ratios public debt stabilization public sector liabilities pure rate RDornbusch real interest rate real money balances reduction in government relative inflation rates relative per capita relative public debt relative rise returns to scale rise in public seigniorage Steady State Increase steady state public steady state rise steady state version steady-state public debt tax increases uA(t World Economy world government debt world real interest worldwide