Renowned Economics Duo: We're Screwed

Famous economists very often come out and say stuff that I've already said here on NBfPB.  Like Nobel prize winner Robert Lucas for instance.

So remember when I said that we are broke and are going to start repudiating our liabilities through financial repression, inflation and outright repudiation of debts???  (Here too.)  Well, superstar economists Ken Rogoff and Carmen Reinhart are saying it too.

Many advanced economies are likely to require financial repression, outright debt restructuring, higher inflation and a variety of capital controls, a new research paper commissioned by the International Monetary Fund (IMF) has warned.

The magnitude of today's debt in Western economies will mean fiscal austerity will not be sufficient, Harvard economists Carmen Reinhart and Kenneth Rogoff said in the report, as policymakers continue to underestimate the depth and duration of the downturn.

 Happy Friday!