"Krugman suggests alternative to $1 trillion coin for debt ceiling crisis"
Nobel laureate Paul Krugman suggests that premium bonds would be a better solution to the debt ceiling problem than minting a $1 trillion coin, which could cause inflation to soar and has a credibility issue. Krugman believes the Treasury could offer premium bonds, or bonds that trade higher than their face value due to a high coupon rate relative to prevailing market rates, and raise money without increasing the national debt. The debt ceiling debate has grown increasingly heated in Washington, with Republicans pushing for strict spending cuts in a bill that Democrats have labeled a “ransom note,” while the Biden administration insists the debt ceiling must be lifted with no strings attached.