Capable Quote by Paul Krugman
“We know that advanced economies with stable governments that borrow in their own currency are capable of running up very high levels of debt without crisis.”
About This Quote
Source Speech: Economic Outlook, Paul Krugman, 2020
Countries that control their own currency can sustain high debt without immediate crisis, given stable governance.
In simple terms: Currency control lets governments borrow heavily safely.
Key Takeaway
Use fiscal policy wisely under stable conditions.
Themes
debt sustainability
monetary sovereignty
economic policy
Mood
cautious
analytical
Type
explanatory
policy‑focused
When to use this quote
- government budgeting
- infrastructure spending
- pandemic response
- emerging markets
Key Concepts
Keynesian economics
fiscal theory of the price
Questions to Reflect On
- How long can high debt be maintained?
- What safeguards prevent fiscal collapse?
A Different Perspective
Political instability can still trigger debt crises.
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