Given the otherwise robust US macroeconomy, the outlook for the national debt arguably is one of the most pressing challenges. Ordinarily, during an election campaign, one would expect candidates to outline how they intend to address critical issues like this. However, neither Harris nor Trump has put forward comprehensive plans to reduce the US debt. Instead, both candidates have introduced economic proposals that are likely to exacerbate the already unsustainable debt trajectory, potentiall...| Rangvid’s Blog
There is a great deal of euro-bashing circulating these days. The central argument is that Europe has been lagging the US economically, with an equally bleak outlook for the future. However, one often-overlooked factor is the significant role of massive borrowing—expansionary fiscal policy—in driving stronger US growth. When this is accounted for, the US’s apparent economic outperformance becomes less impressive.| Rangvid’s Blog
The US economy has proved remarkably resilient during this period of monetary tightening. One important reason is that households had large savings left over from the pandemic when the tightening began. I analyse why household savings accumulated during the pandemic and when they will be depleted. When this happens, households will be less resilient, which may have a negative impact on consumption and economic activity. I also analyse how excess savings are related to the flare-up and subsequ...| Rangvid’s Blog
