In the Media

Prof. Emeritus Olivier Blanchard speaks with New York Times opinion writer Peter Coy about the U.S. policy towards federal debt. “Blanchard pointed out in the [his] book that if the interest rate the government pays on its debt is lower than the economy’s growth rate, the existing stock of debt will feel lighter over time because it will shrink as a share of gross domestic product even if the government isn’t running surpluses,” writes Coy.