Interesting read recommended by Mankiw on debt measurements. Who would have thought fiscal gaps and official debt statistics paint such a different picture?
“It’s a strange word in which a totally bankrupt country — the U.S. — can borrow at extremely low cost while printing money at astronomical rates. It’s a strange world in which policymakers can’t distinguish economic from linguistic measures of fiscal sustainability. And it’s a strange world in which Italy, the developed world’s most fiscally responsible country, has to be lectured on fiscal prudence by countries in far worse fiscal shape.”