On Fri, Jun 4, 2010 at 2:13 PM, David B. Shemano <[email protected]> wrote: > PK seems certain that the present debt level is too low. That is a claim to > knowledge, is it not? So if he knows the present level is too low, he should > be able to tell us what level would be too high. The latter follows from the > prior, does it not? I think my ability to judge and understand if PK is > right about the debt level being too low is dependent in great part upon my > understanding of what PK believes would be too high. Doesn't seem like alot > to ask. >
That also is easy. We can safely say that a debt/GDP of 10% is way too low and a ratio of 10000% is probably too high for the US right now. You may say that that leaves such an enormous range for the "right level of debt" as to be almost useless in practice and you would be exactly right. The question you are asking simply does not lend itself to a more precise answer. That means that it is a poorly formulated question. More usefully, Krugman judges that under the present historical circumstances, even a 100% debt level for the US to be far too low. He also backs up his case with detailed analysis and explanations (see link I sent earlier). If you disagree with his analysis, please explain why. -raghu. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
