Friday, January 4, 2013

Izabella Kaminska — On the new purpose of government debt


Izzy picks up on Frances Coppola's post on the purpose of government debt being to provide safe assets rather than finance expenditure.

The Financial Times | FT Alphaville
On the new purpose of government debt
Izabella Kaminska

1 comment:

paul meli said...

Which is why I'm not particularly enthralled by the no-bonds argument and why I believe the "future debt burden" argument is so much bullshit.

The big unfunded liability of the future will possibly come from out-of-work neo-classical economists and academics that can't be re-trained to do anything useful.

They shoot horses don't they?