2min snip

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How much national debt is too much?

Planet Money

NOTE

Analyzing the intricate link between national debt and economic growth

The relationship between national debt and economic growth is complex and bidirectional, varying based on different factors such as the amount of debt, currency composition, and debt holder. High debt can cause low growth while low growth can also cause high debt. The tipping point for dangerous debt levels differs among countries, ranging from 90% to 45% to 100% of debt-to-GDP ratio. Factors like currency composition, debt duration, and debt holders play crucial roles in determining the impact of debt on a country's economy. The analysis of debt and economic growth has evolved to be more intricate over time, leading to a better understanding of the limitations and complexities involved, providing valuable contributions to economic research.

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