Is Government Debt Too Low?

Government debt has skyrocketed since the financial crisis, and now tops 100% of GDP on average in rich countries. Is that too high? Oddly, it may not be high enough.

That’s the provocative suggestion Brad DeLong, from the University of California at Berkeley made at the International Monetary Fund’s “Rethinking Macro” conference last week. Mr. DeLong, who also blogs for the Washington Center for Equitable Growth bases his argument on a simple observation.