Adrien Auclert, Hannes Malmberg, Matthew Rognlie, and Ludwig Straub presented the paper “The Race Between Asset Supply and Demand” at the Jackson Hole shindig (link to paper). The paper argues that the demand for assets has so far outstripped supply, and the abstract has the eye-catching conclusion: “Making debt sustainable requires a fiscal consolidation of at least 10% of GDP, but debt could reach 250% of GDP without pushing up interest rates.”

The paper includes the...