Richard Portes's picture
London Business School and CEPR

Voting history

Responsible long-term fiscal policy (pilot survey)

First question:

To help ensure that advanced country governments have sufficient flexibility to respond to future crises, it is important that finance ministries aim for a ratio of public debt to GDP that is substantially less than 60% in normal times.

Strongly Disagree
Confidence level:
Very confident
Recent empirical work suggests there are no thresholds beyond which the debt-to-GDP ratio is associated with lower economic growth. History shows that economies can cope with very high ratios, although it may take an extended period to return to 'normality'. But 'normal' may encompass a very wide range. The fixation on debt reduction since the crisis has been bad economic policy, with demonstrably bad results.