Raghu writes:

>> 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.

You keep evading my question.  I will stipulate for purposes of discussion that 
PK is right that a 100% debt level is better for the economy than the present 
debt level.  But if PK knows that 100% is better, he should be able to tell me 
whether 110% is better, whether 120% is better, etc. -- he should be able to 
tell me at what point the percentage would be too high.  I don't understand how 
PK can know that 100% is better if he does not know at what point X% is too 
high.  

David Shemano


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