Tuesday, January 24, 2017

Lars P. Syll — Public debt and economic growth

Jaume Ventura & Joachim Voth quote:
Towering debts, rapidly rising taxes, constant and expensive wars, a debt burden surpassing 200% of GDP. What are the chances that a country with such characteristics would grow rapidly? Almost anyone would probably say ‘none’.
Lars P. Syll’s Blog
Public debt and economic growth
Lars P. Syll | Professor, Malmo University

1 comment:

Ralph Musgrave said...

I do like the chart in Lars Syll’s article which shows Britain’s national debt averaging around 150% of GDP during the industrial revolution. Professor Potato Head (Kenneth Rogoff) will be crying his eyes out.

According to him, a debt to GDP ratio anything above 90% harms growth. But the industrial revolution was a period of economic growth unparalled in any earlier period of human history.

I confidently predict that Potato Head will not be dwelling on that inconsistency. In fact the words "brush", "under" and "carpet" spring to mind.