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March 6, 2024

Year-on-Year Change in Federal Debt to GDP or Potential GDP

Blog: Econbrowser

Menzie Chinn

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Abstract

Reader Bruce Hall notes the extreme jump in debt-to-GDP in 2020 was attributable in part to the public health economic lockdowns, to wit: But the economic shutdowns certainly affected the equation's denominator in 2020. I note that using the counterfactual potential GDP as estimated by CBO does not change the picture substantively – I add […]

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