This podcast episode explores the relationship between national debt and the economy, with a particular focus on the debates surrounding the significance of high levels of debt on economic growth. The conversation delves into the paper "Growth in a Time of Debt" by Carmen Reinhart and Kenneth Rogoff, which introduced the idea that high debt can impede economic growth. It discusses the global perspective on the debt experiment and the ongoing debates about the findings. The section also highlights the complexities of the relationship between debt and economic growth, emphasizing that causation can run in both directions. It concludes by discussing the significance of having a benchmark for debt and the potential benefits of facilitating political discussions and decision-making. Overall, the podcast explores the nuances of the relationship between national debt and the economy, leaving many questions unanswered.
