Discussion about this post

User's avatar
Thomas L. Hutcheson's avatar

A bit unfair to comment here on Barro, but since I can't do it there w/o paying, here goes:

I basically agree witheverytning except that student debt forgiveness is inflationary. Ceteris paribus it increases the deficit and that sucks a few more resources from investment into consumption and THAT is a reason to oppose forgiveness. But if the Fed has an inflation target as it apparently does, the deficit implications of forgiveness or non-forgiveness is just one more or less thing it need to consider in setting the values of its policy instruments to achieve its inflation objectives. In other words it is NOT inflationary, it means higher interest rates.

Expand full comment
2 more comments...

No posts