On Fri, Jun 4, 2010 at 1:23 PM, David B. Shemano <[email protected]> wrote: > So the question remains unanswered -- how does PK know, in any given > instance, the "just right" amount of debt?
The question remains unanswered because it is an unfair question. Why is it the burden of the Keynesian camp to find the "just right" level. How does, say Pete Peterson know what the "right level" is? More importantly, given that I have admitted that the "right level" of debt is not precisely knowable, what are you suggesting we should do given this lack of knowledge? > I took a quick look and PK claims to have refuted the argument that a debt > level of 90% of GDP is a red line at which point bad things happen. Leaving > aside whether PK is accurate, the fact that bad things do not necessarily > happen at some stated percentage does not tell us that bad things won't > happen in any specific instance. The claim that 90% debt is a red-line is like all universal claims easy to refute: you just need to offer a counter-example which Krugman does. In my opinion any attempt to find a fixed red-line that applies universally is quixotic. But if you have some factual problem with Krugman's analysis, I'd love to hear it. -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
