Posted
by
msmash
from the closer-look dept.
Summary of a paper on NBER: We assemble a world panel knowledge set comprising three distinct but believable measures of presidency indebtedness: the debt-to-GDP, the interest-to-GDP, and the debt-to-equity ratios. Our evaluation reveals that these measures yield differing conclusions about current developments in authorities indebtedness. Whereas the debt-to-GDP ratio has reached traditionally excessive ranges, the opposite two indicators present both no clear pattern or a declining sample over current a long time. We argue for the event of stronger theoretical foundations for the measures employed within the literature, suggesting that, with out such grounding, assertions about debt (un)sustainability could also be untimely.
