loading . . . Speaking of debt: Framing, guilt, and economic choices In many Germanic languages, the word for âdebtâ also means âguiltâ. This column explores whether the linguistic overlap leads to greater debt aversion in Germany, the Netherlands, Sweden, and Switzerland. Using a guilt-laden term reduces willingness to borrow, lowers approval for government debt, and influences firmsâ financing plans and politiciansâ framing of fiscal policy. While support for public debt goes down with use of the laden term, the effect disappears when the purpose of the debt is clear. Linguistic framing may help guide borrowing toward socially optimal levels. https://cepr.org/voxeu/columns/speaking-debt-framing-guilt-and-economic-choices
