IMF paper finds highly indebted nations can still grow fast
A new working paper from three economists in the International Monetary Fund's research department finds no evidence of a ‘magic threshold' of sovereign debt, above which economies' growth is seriously compromised – contradicting the controversial findings of Carmen Reinhart and Ken Rogoff, who have argued that debt above 90% of GDP is associated with dramatically worse growth outcomes.
In Debt and Growth: Is There a Magic Threshold?, Andrea Pescatori, Damiano Sandri, and John Simon find no
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