Low interest rates and government debt

Jan 11 2021. A debate with Olivier Blanchard, courtesy of IGIER at Bocconi. r<g is fun, but it is irrelevant to US fiscal issues. r<g of 1% of GDP does not finance perpetual 5% of GDP deficits, every decade 20% of GDP crisis borrowing, plus big new spending plans. And then unfunded entitlements kick in. Also simple economics of why interest rates are low, and a warning of how it could all fall apart. The paper in pdf form, on my blog. Slides. Video of the event.