Fiscal Policy

Friday, May 24th, 2019

The amount of public debt to be serviced is huge and growing, and we’re in uncharted territory now.

Thursday, March 28th, 2019

Can governments run large fiscal deficits financed with new money without generating significant inflation? The experience of Argentina calls this view into doubt.

Monday, March 25th, 2019

Advocates of new government programs often promise that their programs are budget neutral — meaning that adoption of these programs will not increase net government spending. It's never true. 

Wednesday, March 13th, 2019

The history of sovereign debt appears to be a history of default, repudiation, and limited debt enforcement. Why, then, do investors keep going back?

Tuesday, February 5th, 2019

Government spending and borrowing has been and will continue to be seriously out of control, with dire longer-run consequences if not addressed, while addressing it would be far less of a fiscal disaster than it will be if the country is left to follow its current course.

Friday, January 25th, 2019

Strong centralized nation-states are good at marshaling resources to defeat other nations in wars. But how have more recent “wars” we’ve fought against drugs, poverty, and terrorism turned out? Society has gone through staggering changes since 1941, and so have the problems we face. The left should think long and hard about these changes before planning its next round of wars.

Friday, January 25th, 2019

Imagine if a company behaved this way, and refused to get audited for 26 years straight and then failed its audit. How long do you think its investors would stick around?

Thursday, January 24th, 2019

Those who cite low interest rates on government debt miss the point. It is not the price of government borrowing that matters. Rather, it is the opportunity cost of government borrowing to society.

Tuesday, January 22nd, 2019

That number sums all the improper payments by what the government calls high-priority programs. If it makes your head spin, it should.

Wednesday, January 9th, 2019

Argentina has secured an IMF agreement and announced aggressive policies to reduce its fiscal deficit and inflation rate. But that might not be enough to comfort its creditors.

Sunday, January 6th, 2019

If those on the left who subscribe to MMT believe political history will end once they finally implement their enlightened government programs, they are guilty not just of bad economics but of astounding political naivete.

Wednesday, December 19th, 2018

With the ratio of debt to GDP exceeding 100 percent, a crisis is not unthinkable.

Tuesday, December 11th, 2018

Conventional wisdom says that inequality in the United States is spiraling out of control. But what do the data actually say?

Friday, October 26th, 2018

Long-run growth projections have plummeted since the Great Recession. How much blame does fiscal austerity bear for this bleak outlook?

Tuesday, October 2nd, 2018

The essence of economics is far too complex to accredit to a politician.

Tuesday, September 18th, 2018

Social Security is in the hole. It’s time to stop digging. 

Saturday, September 1st, 2018

Coyne and Hall argue forcefully for cultivating a consistent anti-war ideology, one grounded in the economic analysis of the true costs of militarization.

Wednesday, August 22nd, 2018

Weaponizing one’s influence over expectations can certainly shake up a political scene. But it also serves to shake markets, the source of material prosperity.

Monday, August 20th, 2018

The bottom line is that none of us can afford the true budgetary costs of the Democrat Socialist dream. And that’s just the financial costs. It says nothing about the stifling of innovation, of entrepreneurship, and of work under such plan. It’s amazing what twenty-five years can do to a political party’s ideology.

Saturday, March 24th, 2018

A sovereign GDP-linked bond pays the bondholder only if certain economic conditions hold.