Tuesday, September 21, 2021

On the Debt Limit

Because of the pandemic, many countries are raising the debt limit. Is there any way around it? Revisit the article by Jason Furman and Rohit Kumar (2017), published in WSJ.  Another article suggest use the debt ceiling to reduce the debt.

Excerpt:

"...Yet we both believe that the statutory debt limit has outlived its usefulness as a mechanism for restraining the size of the national debt. Or, put more precisely, we think that whatever residual value the debt limit may have is far outweighed by the risk that a potential U.S. default poses to the global economic order..."

Government Debt Cartoons and Comics - funny pictures from CartoonStock

Image credit - CartoonStock

-

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Musk, UK and EU's New Communication Regulations

According to this article,  Musk and Zuckerberg are promoting a version of free expression that defines censorship purely in terms of state ...

  • Budget 2019 Discussion
    How are you going to contribute to the nations in terms of closing the wealth inequality gap?
  • Malaysia and Economic Recovery
    In Tinta Minda, BERNAMA. Malay article. Excerpt: "Laporan prestasi ekonomi negara pada suku ketiga pada 2020 yang diumumkan Bank Negara...
  • Great Recession vs. Great Depression
    Please read the article by Paul Krugman in the New York Times at the link given below and give your comments as what Malaysia had experience...