tag:blogger.com,1999:blog-2277215496195926573.post7346447676529956295..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Nick Rowe says debt is a burden on future generations.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-53814070506230293512015-02-13T00:45:55.799-08:002015-02-13T00:45:55.799-08:00Hi KK,
You are quite right to point to the releva...Hi KK,<br /><br />You are quite right to point to the relevance of "international debt". I should have included that in the above article - not that that is any sort of saving grace for the Rowe "inter-generational" theory.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-54089867313103935062015-02-12T22:57:39.946-08:002015-02-12T22:57:39.946-08:00Bravo. This is very clear.
The writings of Nick Ro...Bravo. This is very clear.<br />The writings of Nick Rowe and Simon Wren-Lewis on this issue are utterly muddled.<br />Wren Lewis' latest confusion is:<br />http://mainlymacro.blogspot.com/2015/02/the-burden-of-government-debt-again.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MainlyMacro+%28mainly+macro%29<br /><br />This matter was settled long ago (1948) by Abba Lerner - see:<br />https://larspsyll.wordpress.com/2015/02/11/the-true-nature-of-public-debt/<br />-----------<br />An important related matter is international debt, as was recognised by Abba Lerner. <br />Government debt owed to foreigners WILL be a burden on future generations when interest payments or redemptions become due. Conversely foreign debts held as assets in sovereign (or private) funds WILL benefit future generations.<br />The writings of Bill Mitchell and other MMTers are sometimes confusing and unrealistic when they ignore international debt.<br />Foreign holdings UK national debt about 30% of the total debt, about 23% of GDP.KongKinghttps://www.blogger.com/profile/10992633301481631373noreply@blogger.com