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Debt and Economic Growth Relationship
The relationship between debt and economic growth is complex and does not show a definitive causation. Borrowing money to stimulate the economy could lead to high debt and low growth, but it is not necessarily the debt causing the low growth. The causality can run in either direction depending on the specific situation. Different economists including Andrea have researched the relationship and found that there is no clear answer from empirical evidence. The tipping point for when debt becomes dangerous varies across countries and can be influenced by the level and type of debt a country holds.