Most of today’s debate turns on the amount of US debt issuance, but the nature of the debt is also under discussion. In the current environment of macroeconomic uncertainty, the demand for safe assets has bloomed and the definition of “safe” is evolving. Part of this is the debate on whether floating rate notes should be issued by the US Treasury.
The economic crisis: How to stimulate economies without increasing public debt
Richard Wood, 31 August 2012
Download CEPR Policy Insight No. 32 here.
US debt issuance since 1951 and the fallacy of issuing floating rate notes
Peter Stella, Manmohan Singh, 14 May 2012
A case for balanced-budget stimulus
Pontus Rendahl, 26 April 2012
With debt-levels hitting record highs and growth running low on steam, European policymakers have found themselves facing a grim dilemma: should government spending be increased at the risk of reawakening the wrath of the sovereign bond markets? Or should austerity instead assume the political mantra with the hope of merely muddling through?
Lessons from a century of large public debt reductions and build-ups
S. M. Ali Abbas, Nazim Belhocine, Asmaa El-Ganainy, Mark Horton, 18 December 2011
Empirical work on debt cycles and debt sustainability has been constrained by lack of public debt data on a large number of countries over a long time period. Existing studies are based on datasets that either cover short time periods (such as Jaimovich and Panizza 2010) or omit a large number of countries (such as Reinhart and Rogoff 2010).
Public-debt crises and bad equilibria: Lessons from the GIIPS Countries
Maurizio Bovi, 2 December 2011
All the GIIPS countries (Greece, Italy, Ireland, Portugal and Spain) have been hit by the current government debt crisis (see eg Manasse and Trigilia 2011).
Private pensions for Europe
Lans Bovenberg, Casper van Ewijk, 20 November 2011
The current EU debt crisis makes more private funding of pensions desirable.
Chipping away at public debt – Sources of failure and keys to success in fiscal adjustment
Anna Ivanova, Paolo Mauro, Edouard Martin, 9 November 2011
The global financial crisis has caused government debt to soar in the advanced economies. Public concern is rising and debates rage on how to fix the problem.
External debt relief but increasing domestic debt
Andrea F Presbitero, 19 November 2010
The global crisis and the expansionary government reaction in many countries culminated in fast-growing government debt in the US and some European countries. This has revamped the attention of policymakers and academics on the adverse effects of large public debt.
Hans Gersbach, 14 November 2010
In democracy, political forces often tend to push the volume of public debt beyond socially desirable levels. This time, the amount of accumulating public debt appears to be unprecedented in peace time (Buiter and Rahbari 2010). This is most obvious in the Eurozone with its soaring public debt levels and the sovereign debt crisis.
The long wave of government debt
Andrew Scott, 11 March 2010
One lasting impact of the global financial crisis is that government debt will remain high for decades to come. Forecasts suggest UK government debt will double to reach 94% by 2011 and US debt will rise to 96%. High debt is seen as a serious problem. As Adam Smith warned more than two centuries ago “the practice of funding has gradually enfeebled any state which has adopted it”.
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- The ECB’s stealth bailoutSinn
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Adelman, 28 October 2013
Reichlin, Giugliano, 7 November 2013
Holmes, McGrattan, Prescott
Beck, De Haas, Ongena