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GDP is somewhat close to a nation's income. Those with higher incomes can typically safely afford larger loans.
by aeternum 7y ago
GDP is somewhat close to a nation's income. Those with higher incomes can typically safely afford larger loans.
- criddell 7y agoSo what would be different between two similar countries, one with a debt:GDP ration of 0.1 and the other with a ratio of 2? Is the only difference that the first country has more options in a time of crisis?
- aeternum 7y agoThe country with the ratio of 0.1 can pay off its debt 20x more quickly/easily. Much less risky of that country defaulting.