Federal Debt Economics
What are The different ways we measure federal debt and deficits?
Geoffrey Woglom, Professor of Economics Emeritus at Amherst College discusses traditional ideas of the economic costs of the debt.
why recent events have caused economists to rethink these issues. In particular,
Professor Woglom will describe Modern Monetary, Theory, which argues that there are no costs to debt and, what This considers to be a more reasonable view, that the costs may be smaller than we thought as long as we stabilize the debt when the pandemic is over.
Stabilizing the debt, however, will require reducing deficits from their pre-pandemic levels of 5 percent of GDP to under 1 percent of GDP.
Geoffrey Woglom is a Professor of Economics Emeritus at Amherst College where he taught for over 40 years. During his career, he has been a consultant at the Federal Reserve Board and the International Monetary fund and held visiting positions at Harvard, Cambridge, LSE, and Nanjing universities.