tag:blogger.com,1999:blog-8897997766931633186.post5941647681183387351..comments2024-02-14T03:21:37.506-05:00Comments on Monetary Freedom: Rowe on Government DebtBill Woolseyhttp://www.blogger.com/profile/06330232724290161369noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8897997766931633186.post-1566052238304149092015-02-14T00:28:10.832-05:002015-02-14T00:28:10.832-05:00great work has done thanks for sharing and kee[ it...great work has done thanks for sharing and kee[ it up Accredited GED Onlinehttp://accreditedgedonline.weebly.com/noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-28220675842676713862012-01-05T09:25:00.687-05:002012-01-05T09:25:00.687-05:00For me, to determine the benefits or costs of gove...For me, to determine the benefits or costs of government borrowing, you need to look at what the government is spending its money on. Is the government buying consumption goods or investment goods? If the money is being spent on providing goods for todays generation, then this is a transfer between generations. If the money is being spent on investment goods that will give public goods to todays generation and tomorrows, then the answer in more ambiguous.<br /><br />Certainly if r is less than g, then it doesn't matter, but what makes r<g? When the government makes prudent investments!Matthew Enrighthttps://www.blogger.com/profile/07524103248493124810noreply@blogger.comtag:blogger.com,1999:blog-8897997766931633186.post-85277299259021621972011-12-29T13:13:03.644-05:002011-12-29T13:13:03.644-05:00Bill: Thanks.
"If this is true, and the int...Bill: Thanks. <br /><br />"If this is true, and the interest rate is less than the growth rate of the economy, then why have taxes?"<br /><br />That's a good way of addressing the question.<br /><br />"What troubles me most about these sorts of thought experiments is that they assume perfect knowledge about the indefinite future."<br /><br />Which suddenly made me think: suppose the government issued NGDP bonds (indexed to NGDP growth)? Then the government would know in advance if the nominal interest rate were less than the growth rate of NGDP.<br /><br />Hmmmm. I think this means that the government should issue an unlimited supply of bonds that promise an interest rate equal to the NGDP growth rate. ?<br /><br />BTW. I am very disappointed that those who believe the debt is not a burden have not responded to my post. I laid down a challenge, on an important policy question, and they seem to have ignored it, so far.<br /><br />Ages ago I read Buchanan. But he was good.Nick Rowehttps://www.blogger.com/profile/04982579343160429422noreply@blogger.com