Monday, June 25, 2018

"Some ways to introduce a modern debt Jubilee"

The bigger problem with debt is not so much the inequality aspect but the deadweight anchor it places on societal and individual growth unless the returns on borrowed capital are quite a bit greater than the cost to borrow.
And then there's the whole "debt intensity" thing where it takes more and more borrowing to achieve a given level of general economic increase.

From VoxEU:
Charles Goodhart, Michael Hudson 11 June 2018