A COMMENT ON THE US STUDENT LOAN SITUATION FROM A POST-KEYNESIAN PERSPECTIVE

This paper aims to contribute to the debate on the US student debt situation. First, it highlights the determination of labor earnings and economic activity as a function of macroeconomic conditions and the relevance of considering this endogeneity to analyzing student debt sustainability. Next, I p...

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Bibliographic Details
Published inBrazilian Keynesian Review Vol. 9; no. 1; pp. 53 - 76
Main Author Pereira Serra, Gustavo
Format Journal Article
LanguageEnglish
Published 01.05.2023
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Summary:This paper aims to contribute to the debate on the US student debt situation. First, it highlights the determination of labor earnings and economic activity as a function of macroeconomic conditions and the relevance of considering this endogeneity to analyzing student debt sustainability. Next, I present a background on student loans and the labor market in the US. Moreover, using a Minskyian framework, I argue that the current student debt situation can have adverse results on economic activity, although not leading to financial instability. Last, I comment on the student debt cancellation debate, proposing alternative policies with more progressive and lasting effects.
ISSN:2446-8509
2446-8509
DOI:10.33834/bkr.v9i1.291