Encyclopedia of Opinion
Question
Do deficits matter?
Position‹3 of 3

Moderate deficits are good, very high deficits lead to problems

Rather than a binary disagreement that deficits are good or bad, it is reasonable to conclude that small deficits are irrelevant to the broad economy, and only high deficits financed by central bank accommodation create inflation

Supporting arguments · 1

  1. Debt, broadly speaking, is money we owe to ourselves
    Most debt that governments take on is owed to its own citizens. Debt is a liability, but every liability is someone else's asset. Debt involves a transfer from those who pay taxes to those who own bonds and the money stays in the economy.