Saturday, July 16, 2011

A 90% Debt Burden Seems To Be A Key To Lower Future Growth And We Are Above That Now

See Reinhart and Rogoff on the Debt Problem by Greg Mankiw.
"They write:
In our study “Growth in a Time of Debt,” we found relatively little association between public liabilities and growth for debt levels of less than 90 percent of GDP. But burdens above 90 percent are associated with 1 percent lower median growth."

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