In a spreadsheet, decompose the change in the debt ratio from 2020 to 2025 into its key drivers using the equation for debt: Macroeconomics in Public Policy Assignment, DCU, Ireland
| University | Dublin City University (DCU) |
| Subject | Macroeconomics in Public Policy |
- In a spreadsheet, decompose the change in the debt ratio from 2020 to 2025 into its key drivers using the equation for debt accumulation that we studied in class (shown above) and data from Budget 2023 Economic & Fiscal Outlook.
- Construct a table summarising how each of the three components of the equation contributed to changes in the debt ratio during the COVID-19 pandemic as well as their expected contributions in the years ahead.
- Comment briefly on how each of these drivers has contributed to changes in the debt ratio during the pandemic and in the years ahead. Consider a counterfactual scenario in which interest rates are set at much higher levels than assumed in Budget 2023. In this counterfactual scenario, set the interest rate on government debt
