Gómez-Puig, MartaSosvilla-Rivero, Simón2023-06-192023-06-1920150161-893810.1016/j.jpolmod.2015.09.004https://hdl.handle.net/20.500.14352/34187New evidence is presented on the possible existence of bi-directional causal relationships between public debt and economic growth in both central and peripheral countries of the European Economic and Monetary Union. We test for heterogeneity in the bi-directional Granger-causality across both time and space during the period between 1980 and 2013. The results suggest evidence of a “diabolic loop” between low economic growth and high public debt levels in Spain after 2009. For Belgium, Greece, Italy and the Netherlands debt has a negative effect over growth from an endogenously determined breakpoint and above a debt threshold ranging from 56% to 103% depending on the country.engjournal articlehttp://dx.doi.org/10.1016/j.jpolmod.2015.09.004open accessC22F33H63O40O52Public debtEconomic growthGranger-causalityPeripheral EMU countriesCentral EMU countriesDesarrollo económicoEconometría (Economía)Economía internacionalEconomía pública5307.03 Modelos y Teorías del desarrollo Económico5307.04 Estudios del desarrollo Económico5302 Econometría5310 Economía Internacional