Should-Read: Nick Bunker: When the next recession hits, how will fiscal stimulus affect government debt sustainability?: "Alan J. Auerbach and Yuriy Gorodnichenko... investigate how much of an impact a stimulus program would have... http://equitablegrowth.org/equitablog/value-added/when-the-next-recession-hits-how-will-fiscal-stimulus-affect-government-debt-sustainability/
...on being able to spend money in the future while servicing existing government debt.... Using a dataset covering 20 major countries that are members of the Organisation for Economic Co-operation and Development over a number of years from the 1980s to 2017, they measure how much an economic shock in the past changes the movement of a variable over time—in this case, interest rates and debt-to-GDP ratios, among others. The two economists find little evidence that short- and long-term interest rates increase after a fiscal shock, and that debt-to-GDP ratios don’t change that much either...
