Debts & Deficit Are Not A Problem (until you reach full employment)

In the current media- and pundit-manufactured hysteria about the government budget deficit and sovereign debt, much has been made of a relatively recent book by Rogoff and Reinhart.  It purports to find patterns of default by surveying 800 years of sovereign defaults.  R&R conclude that somehow, magically, an 80% debt-to-GDP ratio will virtually ensure sovereign … Continue reading Debts & Deficit Are Not A Problem (until you reach full employment)