HKS Affiliated Authors
James W. Harpel Professor of Capital Formation and Growth
Excerpt
Excerpt
Does Debt Matter? Jeffrey Frankel, July 4, 2013, Opinion. "“Does Debt Matter?” is the question posed by The International Economy to 20 commentators: “The recent scrutiny of the popularized version of the Rogoff-Reinhart thesis (that growth plummets when debt exceeds 90 percent of GDP) makes clear there are no simple formulas for determining the risks in the level of a nation’s debt. …Can a realistic guide be fashioned for determining whether a nation’s debt has reached a danger zone? Or are countries from here on expected to pursue fiscal reforms only if and when a crisis sets in?” My response is yes, debt matters. I don’t think I know of anyone who believes that a high level of debt is without ..." Link