Saturday , November 28 2020
Home / Project Syndicate / The Debt Pandemic

The Debt Pandemic

Summary:
Add to Bookmarks Although sovereign-bond markets remain sanguine about advanced economies’ massive pandemic-related fiscal stimulus programs, much of the accumulated debt will inevitably be passed on to future generations. Given the numerous other risks to long-term growth, how can today’s policymakers best manage the debt burden? In this Big Picture, Modern Monetary Theory advocate Stephanie Kelton argues that no one should, because government spending in the United States is only ever constrained by the amount of real resources in the economy. But the University of Chicago’s Raghuram G. Rajan warns that

Topics:
PS Commentators considers the following as important:

This could be interesting, too:

Timothy Taylor writes When Hamilton and Jefferson Agreed! On Fisheries

Jean Pisani-Ferry writes Grading the Big Pandemic Test

Jeffrey Frankel writes Biden’s Modest Multilateralism

Djoomart Otorbaev writes Kyrgyzstan’s Post-Revolutionary Crossroads

Although sovereign-bond markets remain sanguine about advanced economies’ massive pandemic-related fiscal stimulus programs, much of the accumulated debt will inevitably be passed on to future generations. Given the numerous other risks to long-term growth, how can today’s policymakers best manage the debt burden?

In this Big Picture, Modern Monetary Theory advocate Stephanie Kelton argues that no one should, because government spending in the United States is only ever constrained by the amount of real resources in the economy. But the University of Chicago’s Raghuram G. Rajan warns that today’s debt build-up risks limiting future public investment, and therefore calls for carefully targeted expenditures that protect workers and benefit the young.

Leave a Reply

Your email address will not be published. Required fields are marked *