February 21, 2014
Is there hope for reform? Perhaps not, at least until we recognize a major source of the world’s government debt. When economists and politicians talk about the problem of unsustainable government debt, they often focus on the need to rein in government budgets and entitlement policies. But over the past four decades, for many countries, the most important source of government debt unsustainability has been something else: hidden guarantees for banks that behave a bit like icebergs — one can barely see them, and then all of a sudden, they sink the fiscal ship of state.
» See full article in the Washington Examiner, February 21, 2014.
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