2 ms·
Too many years of declining GDP, and the government becomes a credit risk, forcing it to pay higher yield on the bonds it issues. Running government services o
by KMag 6y ago
Too many years of declining GDP, and the government becomes a credit risk, forcing it to pay higher yield on the bonds it issues. Running government services on a balanced budget while GDP is still declining is tough.
Shrinking GDP one year is much different from it becoming the norm.