Economics Explored US debt ceiling & Gene’s Aussie debt ceiling experience in the GFC | Emerging economies debt crisis - EP190
Host Gene Tunny discusses the US debt ceiling and the emerging economies debt crisis with his Adept Economics colleague Arturo Espinoza. Gene shares a memory of his own experience with the debt ceiling the Australian Government had at the time of the 2008 global financial crisis (GFC).
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What’s covered in EP190
- [04:35] US debt ceiling negotiations.
- [09:18] US hitting its debt ceiling.
- [14:51] The trillion-dollar coin as a possible workaround.
- [16:14] Spending and revenue challenges.
- [26:05] Australian debt ceiling legislation in 2008-09.
- [29:05] US debt limit and consequences.
- [33:25] Argentina's economic struggles.
- [40:02] IMF's Nightmarish Identity Crisis & emerging economies debt crisis.
- [42:27] China's role in emerging markets debt.
- [45:13] PNG and China.
Links relevant to the conversation
Noah Smith’s Subtack post:
Treasury to take ‘extraordinary measures’ as US hits debt ceiling | Financial Times
Michael Knox’s note on the debt ceiling:
AUS_ESQ_230523_US government shutdowns and why US treasuries never default.pdf
https://www.whitehouse.gov/cea/written-materials/2023/05/03/debt-ceiling-scenarios/
Federal Spending | U.S. Treasury Fiscal Data
The IMF faces a nightmarish identity crisis
How China changed the game for countries in default | Financial Times
There Is No Chinese ‘Debt Trap’ - The Atlantic
Argentina raises interest rate to 97% as it struggles to tackle inflation | CNN Business
Argentina inflation smashes past every forecast to hit 109% | Reuters
Thanks to Obsidian Productions for mixing the episode and to the show’s sponsor, Gene’s consultancy business www.adepteconomics.com.au.
Full transcripts are available a few days after the episode is first published at www.economicsexplored.com. Economics Explored is available via Apple Podcasts, Google Podcast, and other podcasting platforms.