Conversation

Jason Furman
@jasonfurman
Replying to
@jasonfurman
Note, many considerations in this policy. I was not implying that short-run GDP was the only or even the main one. Many others were listing that as a/the major reason so wanted to help clarify thinking on it. And in a deeply depressed economy that is an important consideration.
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Arin Dube
@arindube
Replying to
@jasonfurman
What about student debt forgiveness for those with incomes under a threshold? Also, what's the evidence that the consumption impact of an unanticipated debt forgiveness for someone earning 50k/year with say a 50k debt is small?
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Jason Furman
@jasonfurman
Replying to
@arindube
We generally think of wealth effects as 2-5%. For lower income we think they’re dwarfed by cash flow effects. The cash flow effects would be negative for many, positive for some. No idea if it could be tailored. Even if so multiplier at most 0.05 I would guess.
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Nick Baum 🇸🇪
@nickbaum
Replying to
@jasonfurman
and
@tylercowen
Can we structure loan forgiveness to create healthier incentives for universities going forward? For example, record it as "debt" owed by the corresponding institutions, and require repayment (on reasonable terms) in order for future students to be eligible for loans.
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