tag:blogger.com,1999:blog-2761684730989137546.post2990939626212833734..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: The Implausibility Of The Lower Bound Escape Clause — Brian Romanchukmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2761684730989137546.post-57516307486860024592020-09-07T10:28:28.339-04:002020-09-07T10:28:28.339-04:00Ralph, I responded to you on my site as well. That...Ralph, I responded to you on my site as well. That’s the technical definition of “unsustainable,” and I believed that SWL explicitly said as much on Twitter.<br /><br />Anything else is just hand-waving.Brian Romanchukhttps://www.blogger.com/profile/02699198289421951151noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-38519210552373780502020-09-07T03:19:08.696-04:002020-09-07T03:19:08.696-04:00Rogoff was wrong about that as well.
The debt to...Rogoff was wrong about that as well. <br /><br />The debt to GDP ratio relies upon the concept of interest rate feedback - which is a false notion in a sovereign monetary economy as it fails the "and what else do you plan to do with the money" test. <br /><br />It's a failure to close the model and properly understand how savings stock. NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-59439665970284545032020-09-07T03:01:05.210-04:002020-09-07T03:01:05.210-04:00Brian seems to be arguing against the idea that th...Brian seems to be arguing against the idea that the debt/GDP ratio might to to infinity. But who ever said it MIGHT to to infinity? No one that I know of. The most vociferous opponents of a high debt/GDP ratio over the last decade has been the well known collection of suspects: Kenneth Rogoff, Carmen Reinhart, etc. But all Rogoff said was that if the ratio rises above 90% there might be a problem. Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.com