2024-05-01 12:00:48 ET
Summary
- Kenneth Rogoff warns against "magical debt thinking" and calls for developed countries to rebuild fiscal buffers and ensure debt sustainability.
- Too much government debt can slow down economic growth and disproportionately harm low- and middle-income citizens.
- Debt-financed government spending may have short-term benefits, but in the long run, it leads to more pain than good.
Kenneth Rogoff refers to it as " Magical Debt Thinking."
Mr. Rogoff defines magical debt thinking as the belief that "the potential benefits of using debt to finance government spending far outweigh any associated costs."...
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National 'Debt' Issue Needs More And More Attention