James Bullard, Speech: A Two Tranche View of National Debt
Page(s): 33
“Observed debt-to-GDP ratios in the U.S., Japan and some large European economies clearly exceed recommendations given a generation ago in the Maastricht Treaty.”
“This is often considered unsustainable, yet the demand for this debt remains robust.”
“We explore a resolution to this puzzle in a stylized model in which the equilibrium level of the debt-to-GDP ratio is considerably higher than what is recommended in the Maastricht Treaty.”