In a testimony before the Senate Budget Committee, former CBO Director and current Peterson-Pew Commissioner Rudy Penner argues for setting an explicit target for the government’s debt-to-GDP ratio. Penner runs through the risks of a high debt-to-GDP ratio and suggests that it should be brought down to 60 percent of GDP, and then stabilized or decreased further.
Links:
[1] http://budgetreform.org/sites/default/files/SBC_PennerTestimony_Feb11.pdf
[2] http://budgetreform.org/sites/default/files/choose.jpg
[3] http://budgetreform.org/category/issue-area/budget
[4] http://budgetreform.org/category/issue-area/deficits-and-debt
[5] http://budgetreform.org/category/project/peterson-pew-budget-reform-commission
[6] http://budgetreform.org/category/document-type/congressional-testimony