519. Why Some Public Debt Is Good for the Economy with Barry Eichengreen

In this episode of unSILOed, Greg LeBlanc interviews Barry Eichengreen, an economics professor at UC Berkeley, about his book "In Defense of Public Debt." They discuss the historical context of public debt, its role in addressing emergencies, and how it differs from private debt. Eichengreen argues that public debt has been crucial for states to meet crises like wars and pandemics, and he examines the mechanisms by which sovereigns repay debt, distinguishing between domestic and foreign debt. The conversation touches on the importance of creditor representation, the potential for inflation to erode debt, and the unique position of the U.S. dollar. They also explore the challenges of debt consolidation, the productivity of public investments, and the role of government bonds in financial markets, ultimately questioning whether countries can grow their way out of debt and what alternative strategies might be employed.