Offsetting Borrowing
Government borrowing has increased sharply, but the fall in private borrowing by households and firms has been equally dramatic. Overall borrowing has not changed substantially. Will the government be able to reduce its borrowing when private borrowing resumes?
Skidelsky: Economists Clash on Shifting Sands
Setser: Fall in Private Borrowing, Rise in Fiscal Deficit
Setser: Who Bought All the Treasuries?
Federal Reserve: U.S. Flow of Funds
Update 6/15:
In response to Jim Rootham’s suggestion, here is the sum of private and public borrowing.
[...] first quarter — the rise in public borrowing was fully offset by a fall in private borrowing. An updated version of the chart I posted last week comparing government and private borrowing can be found on the [...]
Any chance you can update the chart and add a total line? I think it would clarify things (or hammer the point home, if you prefer).
[...] By the Center for Geoeconomic Studies [...]