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Debt Troubles and Economic Growth
High levels of national debt can lead to scenarios where a country defaults on its debt or experiences high inflation. Additionally, excessive debt can simply drag down the economy and hinder growth. The relationship between national debt and slow growth was a major point of contention in the US post-financial crisis. A pivotal paper by economists Reinhardt and Rogoff in 2010 analyzed debt data from 20 advanced economies, highlighting the historical impacts of different debt levels on economic growth. The paper titled 'Growth in a Time of Debt' had a significant influence on economic discourse for several years.