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Why Economists don't Care about the Debt—Bloomberg QuickTakes (04:28)

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There's been a sharp turn in thinking about how much the size of the national debt actually matters, and economists are abandoning the debt-to-GDP (gross domestic product) ratio as the key measure of fiscal sustainability and the long-term burden of debt on society. Instead they've turned to another metric—the size of interest payments on federal debt relative to GDP—to make the case for much higher levels of deficit spending.

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Why Economists don't Care about the Debt—Bloomberg QuickTakes


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There's been a sharp turn in thinking about how much the size of the national debt actually matters, and economists are abandoning the debt-to-GDP (gross domestic product) ratio as the key measure of fiscal sustainability and the long-term burden of debt on society. Instead they've turned to another metric—the size of interest payments on federal debt relative to GDP—to make the case for much higher levels of deficit spending.

Length: 5 minutes

Item#: FPT279836

Copyright date: ©2021

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