1/4
The constraint depends on how an increase in debt causes businesses, consumers, producers, lenders and investors to respond. If an increase in debt undermines credibility by increasing uncertainty about how the real cost of the debt...
The constraint depends on how an increase in debt causes businesses, consumers, producers, lenders and investors to respond. If an increase in debt undermines credibility by increasing uncertainty about how the real cost of the debt...
https://twitter.com/DEhnts/status/1402552978385641473
2/4
will be allocated – and so causes businesses to disinvest, creditors to raise the cost of funding, consumers to reduce spending, policymakers to shorten time horizons, workers to become more militant, farmers to hoard, etc. – more debt means a worsening economy.
will be allocated – and so causes businesses to disinvest, creditors to raise the cost of funding, consumers to reduce spending, policymakers to shorten time horizons, workers to become more militant, farmers to hoard, etc. – more debt means a worsening economy.
3/4
Just because there is no legal constraint on the ability of a government to create money or debt in its own currency doesn't mean that there is also no economic constraint. If debt is used directly or indirectly to fund productive investment, there is no economic...
Just because there is no legal constraint on the ability of a government to create money or debt in its own currency doesn't mean that there is also no economic constraint. If debt is used directly or indirectly to fund productive investment, there is no economic...
4/4
constraint (although there still may be balance sheet constraints). If it is used to fund non-productive activity, there is.
constraint (although there still may be balance sheet constraints). If it is used to fund non-productive activity, there is.
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