korents

public debt

What people on korents have said about public debt, newest first — 2 positions from 1 person.

  1. 6 Nov 2023

    Olivier Blanchard archive turned

    When safe interest rates are expected to remain below growth rates for a long time, rolling over public debt without later tax increases is feasible and public debt may carry no fiscal cost.
    Across advanced economies, the celebrated ( r - g ), i.e., the difference between the interest rate and the growth rate, appears to have durably changed sign or, at a minimum, to have gone from a substantially negative number to a number closer to zero.

    Across advanced economies, the celebrated ( r - g ), i.e., the difference between the interest rate and the growth rate, appears to have durably changed sign or, at a minimum, to have gone from a substantially negative number to a number closer to zero.

    ↗If markets are right about long real rates, public debt ratios will increase for some timepiie.com

  2. 5 years earlier

  3. 11 Feb 2019

    Olivier Blanchard archive

    When safe interest rates are expected to remain below growth rates for a long time, rolling over public debt without later tax increases is feasible and public debt may carry no fiscal cost.
    If the future is like the past, this implies that debt rollovers—that is, the issuance of debt without a subsequent increase in taxes—may well be feasible. Put bluntly, public debt may have no fiscal cost.

    ↗Public Debt and Low Interest Rates (PIIE Working Paper 19-4)piie.com