U.S. Federal debt, already at the highest level since World War II, has grown dramatically as Washington has expended huge sums to address plummeting output caused by the Covid-19 pandemic. How sustainable is this debt? What explains the long-term trend toward lower interest rates? What was the picture of wealth and income inequality in the United States on the eve of Covid-19? How will the pandemic affect it?
This episode’s guest is Dr. Jorge Barro, fellow in public finance here at the Baker Institute. His area of research involves the development of dynamic macroeconomic models for fiscal policy evaluation. Barro has recently published pieces on federal debt and on wealth and income inequality. They are available on the Baker Institute website.
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