Why hasn't the United States set its debt ceiling either very high-like Denmark, at 776% of its GDP or in a unit of debt that rises with inflation?
Only two countries use a debt ceiling: the United States and Denmark. Both have a nominal debt ceiling, but the U.S. keeps its limit so tight that it has to raise it every year, whereas Denmark’s ceiling is so high that reaching it seems like a fantasy.
This makes me wonder: why hasn't the U.S. taken a different approach to debt? They could set a ridiculously high limit, tie the debt ceiling to GDP (for instance, at 776%), or create a debt unit that adjusts for inflation much like the Consumer Price Index (CPI). I would like to know your views on this matter, now that the U.S. debt has surpassed $40 trillion.