BEYOND THE NUMBERS
The Debt Ceiling: Scrap It or Adopt the Danes’ Great Approach
There’s a crucial difference, however, between our debt limit and Denmark’s: the Danes do not play politics with theirs. . . . When the financial crisis caused a sharp increase in government debt in 2008-2009, the Danes raised their debt ceiling — a lot. The 2010 increase doubled the existing ceiling, which was already well above the actual debt, to nearly three times the debt at the time. As [the Peterson Institute for International Economics’ Jacob Funk Kirkegaard reports, “The explicit intent of this move — supported incidentally by all the major parties in the Danish parliament — was to ensure that the Danish debt ceiling remained far in excess of outstanding debt and would never play a role in day-to-day politics.”Click here for the complete post.