Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Friday, January 22, 2010

debt to gdp in dangerous territory

the relationship between government debt and real GDP growth is weak for debt/GDP ratios below a threshold of 90 percent of GDP. Above 90 percent, median growth rates fall by one percent, and average growth falls considerably more.

---Reinhart and Rogoff as reported by Paul Kedrosky, 1.22

Curently, the US ratio is around 90%.  sigh.

No comments:

Post a Comment