Real Effects of Debt (Cecchetti et al.)

The real effects of debt by Stephen G. Cecchetti. M. S. Mohanty and Fabrizio Zampolli, published by BIS. “Our results support the view that, beyond a certain level, debt is bad for growth. For government debt, the threshold is in the range of 80 to 100% of GDP. The immediate implication is that countries with high debt must act quickly and decisively to address their fiscal problems.” PDF Attached