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

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Oppenheimer and Oscar Economics

This  article  is quite long, but has important modern implications.  Source: Michael Ramirez, The Gazette.

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