The US debt ceiling is a form of self-delusion: a limit imposed on a borrower by the borrower itself. Australia had one until the Coalition and the Green us, abolished it.
Republicans are refusing to support an increase in the debt ceiling, but not doing so risks an unprecedented default. An economist explains why it’s time to get rid of the debt limit once and for all.
By under-promising and over-delivering, Grant Robertson has pulled off a budget that displeases the fewest people.
Inflation, interest rates and booming mining royalties give the Morrison government scope to ignore the deficit daleks.
Governments like ours choose to borrow, they don’t have to.
Now that we are recovering from recession, there’s no telling how low we could push the unemployment rate. One estimate is 3.5%.
Resolution of South Africa’s fiscal crisis depends on faster economic growth which must be led by private investment. Fiscal consolidation is necessary but without growth debt will not stabilise.
Massive borrowing to fund NZ’s economic recovery due to COVID-19 cannot be written off without the risk of worsening the crisis it was designed to meet.
While necessary during the crisis, government borrowing isn’t costless. Longer term, it might depress living standards.
44 of the 50 leading economists surveyed by Economic Society and The Conversation back running up more debt to support the economy. Only three do not.
Modern Monetary Theory is suddenly popular because it implies governments can spend as much as they need to. But that spending comes with risks.
With government debt soaring following moves to combat the coronavirus pandemic, now is the ideal moment to change how states borrow money.
The South African government should be spending more, not less, to boost economic growth and create jobs.
We now need a revolution in our national thinking about debt and deficits.
The new chancellor’s plans won’t look half as prudent if the economy tanks.
The only way out of South Africa’s crisis - financially wobbly utility Eskom, worsening public finances and poor economic growth - is a societal agreement that recognises the need for sacrifices.
The US hit the debt ceiling in March and is expected to run out of ways to get around the new $22 trillion limit by September. An economist explains why the ceiling is a dysfunctional relic.
History suggests we can run sizable budget deficits while shrinking the budget debt burden. Mid last century our leaders weren’t afraid to say so.
The British government is trying to unblock £400m donated in 1927 by an anonymous donor who wanted it to help pay off the national war debt.
If the stars align, consumers will benefit from increased economic activity in the short term. And if they don’t, then the economic recovery will have consumers saving more in uncertain times.