Archive for the ‘Fiscal Policy’ Category

Austerity arithmetic: the dreaded r > g trap.

July 19th, 2015

I’ve got a piece out in PostEverything on a lesson we should learn from some arithmetic embedded in the Greek debt crisis. Basically, I point out that when the interest rate a country must pay to service their sovereign debt is consistently and significantly above their growth rate, their debt/GDP ratio just keeps growing. In… Read more