Timely post from Krugman on the relationship between debt and growth. I particularly liked this seemingly obvious but actually quite interesting take:
What I think I’m seeing, although I haven’t tested this carefully, is that the causal relationship largely runs from growth to debt rather than the other way around. That is, it’s not so much that bad things happen to growth when debt is high, it’s that bad things happen to debt when growth is low.
He references two Carmen Reinhart papers in this post. I don't have the time, energy or, quite frankly, ability to read many academic economic papers, but I've read and listened to numerous interviews with Reinhart and she is defintely one of the go to people when it comes to debt and growth.
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