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How much national debt is too much?

Planet Money

NOTE

Correlation vs Causation in High Debt and Economic Growth

Correlation between high levels of debt and lower growth does not necessarily mean that high debt causes the economy to slow down. The correlation is not causation, as emphasized in the repeated motto 'correlation is not causation'. Theoretical reasons suggest that too much debt could slow down the economy due to various factors like the snowball effect of debt compounding and crowding out effect. However, the causation could also run in the opposite direction, with low growth leading to high debt.

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