3 ms·
>The total interest due on the debt is the flow that you should be comparing to the total income flow. That's what these numbers are. I'm talking about a calc
by incomingpain 2y ago
>The total interest due on the debt is the flow that you should be comparing to the total income flow.
That's what these numbers are.
I'm talking about a calculated popular metric many people use for many countries all over the world.
It's really not a controversial or debated subject for either of these countries.
- sokoloff 2y agoYou’re incorrect about what that figure is. https://tradingeconomics.com/norway/households-debt-to-income https://tradingeconomics.com/norway/households-debt-to-incom... That means for every 100 units of annual income, Norwegians owe 210 units in total debt. (Not total debt service payments [a flow, with unit of kr/yr], but total debt [a stock, with unit of kr].)
- incomingpain 2y ago>You’re incorrect about what that figure is. Why then would all these countries, as websites such as your source be calculating such a useless indicator? If I am incorrect?
- sokoloff 2y agoIt's not a useless measure. Normalizing total debt against total income is a sensible way to compare countries to another. It's just not a measure that is a unitless ratio of two measures with the same units. (The unit is years [of income to payoff the debt if no further interest accrued].)
- incomingpain 2y ago>It's not a useless measure. Thanks for confirming that. I'll return to my original post then.