The lower a country's neutral interest rate, the smaller the fiscal and welfare costs of public debt and the larger its welfare benefits.

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• When safe interest rates are expected to remain below growth rates for a long time, rolling over public debt without later tax increases is feasible and public debt may carry no fiscal cost. OBOlivier Blanchard11 Feb 2019public debtinterest rates
• During post-2008 fiscal consolidation, the costs of high public debt were overestimated and fiscal multipliers were underestimated, understating the output costs of austerity. OBOlivier Blanchard1 Jun 2022public debt
• The main obstacle to sound fiscal policy debate is a widespread, quasi-religious belief that public debt is inherently bad. OBOlivier Blanchard1 Jun 2022public debt
• A bank should be managed against the fat tails it can imagine, not against the stress test its regulator hands it. JDJamie Dimon16 Jul 2025interest rates
• A central bank can eliminate a self-fulfilling ('sunspot') debt crisis simply by credibly committing to buy as many bonds as needed at the low interest rate. OBOlivier Blanchard1 Jun 2022interest rates

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