Peter R. Orszag (Lazard), Robert E. Rubin (Council on Foreign Relations) and Joseph E. Stiglitz (Columbia University)
Uncertainties about future interest rates and their impact on government borrowing call for a new fiscal framework avoiding arbitrary debt and deficit targets. Three veteran government policymakers—Peter R. Orszag, Robert E. Rubin, and Joseph E. Stiglitz—warn that current low interest rates may not last forever. They argue that unpredictable factors like global shocks and climate change require greater use of budgetary “automatic stabilizers” that self-activate in response to economic distress. Policymakers could then use discretion to make any adjustments instead of adhering to arbitrary targets.
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