Boards.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more x
Post Reply  
 
Thread Tools Search this Thread
13-10-2019, 09:35   #1
 
Join Date: May 2019
Posts: 2,371
Debt to GDP - outdated?

The problem with debt to GDP ratios is its comparing apples to oranges. A store to a flow.

GDP is often mistakenly defined as the wealth of the country but it’s really the income. Debt is a sum of money owed but sovereign debt is rarely paid off, its rolled over, so the cost is always the yearly interest repayments. This is what the ratio should be - gdp to interest repayments.

In an era of low interest rates then it should be easy to load up on more debt. In an era of negative interest rates you could argue that you keep loading up until they go positive. Certainly negative interest rates show that bonds are in huge demand.

Is it time to revise the Maastricht treaty and to change our attitudes to this?

Last edited by Franz Von Peppercorn II; 13-10-2019 at 12:10.
Franz Von Peppercorn II is offline  
Advertisement
15-10-2019, 21:01   #2
Geuze
Registered User
 
Join Date: Jul 2010
Posts: 6,787
The NTMA report displays

debt to GDP

debt to GNI*

debt to GG revenue

and also interest to GG revenue

https://www.ntma.ie/news/ntma-instit...on-august-2019
Geuze is online now  
18-10-2019, 00:12   #3
 
Join Date: May 2019
Posts: 2,371
Quote:
Originally Posted by Geuze View Post
The NTMA report displays

debt to GDP

debt to GNI*

debt to GG revenue

and also interest to GG revenue

https://www.ntma.ie/news/ntma-instit...on-august-2019
It might do but it’s hard to navigate to find that.
Franz Von Peppercorn II is offline  
Post Reply

Quick Reply
Message:
Remove Text Formatting
Bold
Italic
Underline

Insert Image
Wrap [QUOTE] tags around selected text
 
Decrease Size
Increase Size
Please sign up or log in to join the discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Share Tweet