The extremely good American Economic Association Presidential Address. The takeaway: fear of government debt should be a second-order consideration in a time of low interest rates. And I would go further: because problems created by government debt can be dealt with at low societal cost via financial repression, it should be not a second- but a third- or fourth-order consideration: Olivier Blanchard: Public Debt and Low Interest Rates: "New theoretical foundations for how to think about fiscal policy and debt, which will stimulate the policy research agenda for the profession for years to come...


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