Public Debt and Low Interest Rates

@article{Blanchard2019PublicDA,
  title={Public Debt and Low Interest Rates},
  author={O. Blanchard},
  journal={NBER Working Paper Series},
  year={2019}
}
  • O. Blanchard
  • Published 2019
  • Economics
  • NBER Working Paper Series
Blanchard develops four main arguments concerning the costs of public debt when safe interest rates are low. First, the current US situation in which safe interest rates are expected to remain below growth rates for a long time is more the historical norm than the exception. If the future is like the past, this implies that debt rollovers—that is, the issuance of debt without a subsequent increase in taxes—may well be feasible. Put bluntly, public debt may have no fiscal cost. Second, even… Expand
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