Public debt

Public Debt and GDP: A Look at OECD 1950s-Present

Is there a link between public debt and growth? Yes, in all periods since the 1950s

The results obtained by Reinhart and Rogoff (RR) (loss of growth when the public debt-to-GDP ratio exceeds 90%) have recently been criticised by Herndon-Ash and Pollin (HAP) (see Bibliography at the end), especially because of calculation errors. However, RR have for the most part maintained their conclusions that public debt has a negative impact on growth.


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