Public Debt: Fiscal and Welfare Costs in a Time of Low Interest Rates

Policy Brief
February 2019
Photo Credit: 
REUTERS/Gary Cameron/Files

In his presidential address to the American Economic Association in early January, Olivier Blanchard explored the costs and benefits of public debt in the current environment of low interest rates. In this Policy Brief, he first summarizes his argument; he then addresses a number of objections to his conclusions and considers the practical fiscal policy implications.