We routinely compare gov debt (stock) with GDP (flow).
If future flow of GDP is discounted to a stock, if growth > i. r. which it often is -> NPV of expected GDP = infinite -> Debt stock/GDP stock = zero
Essential point made by @ojblanchard1 @jasonfurman
piie.com/system/files/d… https://t.co/IFt0PB5NPf
RT @BJMbraun: How to be an effective political economist: Laser focus on the neuralgic points of the state-market nexus, follow
May 18, 2023
RT @BJMbraun: How to be an effective political economist: Laser focus on the neuralgic points of the state-market nexus, follow the money,…