The dangers of fiscal policy
Acton Institute Powerblog

The dangers of fiscal policy

Note: This is post #127 in a weekly video series on basic economics.

In the early 2000s, Argentina’s debt reached 150 percent of GDP, leading to what was the largest government default in the history of the world. How does this happen? Why makes a country take on too much debt?

In this video by Marginal Revolution University, economist Alex Tabarrok explains some of the dangers of fiscal policy.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).