A couple of observations: - page 4 on the y axis. Should be primary expenditure minus receipts PLUS interest expense if we're talking about flow of payments to holders of government debt. Someone who holds government debt receives interest payment. They don't pay it out. Chris paused right before that statement, which gives me the impression that he sensed the error, but didn't want to bail out of the statement. Nonetheless, this is an interest manner to think of the debt burden; we're very used to the gross burden, but we should be studying the net burden. - it would be really interesting to update the graphs given the increase in interest rates since 2020. - the spinning bottle cap made me want to reach through my monitor and throw it in the garbage. - the question regarding multiple equilibria in the end didn't really make sense given the material Chris presented. Will definitely be checking Markus' other videos out. Shame I didn't discover these earlier.
The idea of a combined institution that will help stabilize European (or African? or South American? or a mixture?) sovereign debt to increase creditworthiness and drive down rates is BRILLIANT! Focus some energy on trying to design such a thing, and propose it to the IMF and ECB!
This lecture is riddled with so many assumptions and errors, that it is virtually useless. The cost of the proposed policy is born by the poor and the working class. Five people a risk free rate that helps them save and let asset prices fund these rates
A couple of observations:
- page 4 on the y axis. Should be primary expenditure minus receipts PLUS interest expense if we're talking about flow of payments to holders of government debt. Someone who holds government debt receives interest payment. They don't pay it out. Chris paused right before that statement, which gives me the impression that he sensed the error, but didn't want to bail out of the statement. Nonetheless, this is an interest manner to think of the debt burden; we're very used to the gross burden, but we should be studying the net burden.
- it would be really interesting to update the graphs given the increase in interest rates since 2020.
- the spinning bottle cap made me want to reach through my monitor and throw it in the garbage.
- the question regarding multiple equilibria in the end didn't really make sense given the material Chris presented.
Will definitely be checking Markus' other videos out. Shame I didn't discover these earlier.
The idea of a combined institution that will help stabilize European (or African? or South American? or a mixture?) sovereign debt to increase creditworthiness and drive down rates is BRILLIANT!
Focus some energy on trying to design such a thing, and propose it to the IMF and ECB!
This lecture is riddled with so many assumptions and errors, that it is virtually useless. The cost of the proposed policy is born by the poor and the working class. Five people a risk free rate that helps them save and let asset prices fund these rates