Jason Hsu, Research Affiliates With markets and news headlines reacting daily to the drama that is the European sovereign debt crisis, economic...
Jason Hsu, Research Affiliates With markets and news headlines reacting daily to the drama that is the European sovereign debt crisis, economic observers are emboldened in their claim that high government debt levels ultimately lead to disastrous outcomes (at least if you are a European Monetary Union member country without your own printing press). As investors, should we be concerned? What specifically makes high government debt-to-GDP bad? How much is "too much"? Does it matter who owns the debt? In this issue, we will review the basic economics of government debt financing to gain perspective on the consequences of high government debt levels. Read More
