The Debt/GDP Ratio Is NOT Useful. What You Need To Know 5
Japanese Government Bonds are an important source of repo collateral – they serve a purpose beyond the considerations of debt sustainability & coupon payments.
The Debt/GDP Ratio Is NOT Useful. What You Need To Know 4
Low interest rates don’t mean that creditors will keep lending to a country. So why are creditors willing to roll over Japan’s debt at ultra low interest rates?
The Debt/GDP Ratio Is NOT Useful. What You Need To Know 3
There is another reason interest expense must be used when understanding debt sustainability – defaults occur when one fails to make interest payments.
The Debt/GDP Ratio Is NOT Useful. What You Need To Know 2
What are measures of stock and flow, and how are they pertinent to understanding the limitations of the Debt/GDP ratio?
The Debt/GDP Ratio Is NOT Useful. What You Need To Know 1
The Debt/GDP ratio is the conventional way of gauging a country’s ability to repay its debt. However, just because everyone uses i9t doesn’t make it useful.
