4 ms·
How do you feel about comparing debt to GDP?
by unmole 4y ago
How do you feel about comparing debt to GDP?
- Cwizard 4y agoIt’s a better metric because GDP gives some insight in the potential income of a country. Although it must be coupled with current tax % to be really useful. Debt usually has monthly or yearly payments, GDP refers to yearly income. In that sense I see a relation. An endowment is just a pile of money, I don’t see a time element there.
- unmole 4y ago> Debt usually has monthly or yearly payments Sovereign debt, the kind that is typically compared to GDP only pays out interest periodically, not the principal.