Archive for the ‘Deficits, Debt and Taxes’ Category

Dynamic Scoring in Action: Unwarranted Certainty

August 5th, 2015

Once the Republicans took the majority in Congress, they instructed the budget scorekeepers to do “dynamic scoring:” building macroeconomic feedback effects into their revenue estimates from proposed changes to tax policy. Because economists broadly assume that taxes distort decisions about activities with growth impacts, like labor supply or capital investment, cutting taxes often generates more… Read more

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

No debt forgiveness in the Greek deal, as austerians announce Phyrrhic victory

July 13th, 2015

There’s still much to learn about re the (heart-) breaking news re what looks like a terribly harsh and austere deal to keep Greece in the eurozone, but this ‘graf from the NYT story is, if not unexpected, really unfortunate: But any easing of Greece’s debt repayment obligations would not include something Greece had previously made… Read more