Nigeria
2024-12-16 18:40
IndustryThe primary deficit is the swing factor that domin
We’re at a key juncture when it comes to US debt dynamics. Government debt is approximately equal to the value of GDP. In other words, there’s a c.100% debt/GDP ratio. This makes the mathematics relatively easy. Basically, when debt is the same size as GDP, debt dynamics are broadly determined by whether the growth in nominal GDP is above or below the average coupon print on the debt. Provided the former is higher than the latter, then the debt/GDP ratio can trend lower
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The primary deficit is the swing factor that domin
We’re at a key juncture when it comes to US debt dynamics. Government debt is approximately equal to the value of GDP. In other words, there’s a c.100% debt/GDP ratio. This makes the mathematics relatively easy. Basically, when debt is the same size as GDP, debt dynamics are broadly determined by whether the growth in nominal GDP is above or below the average coupon print on the debt. Provided the former is higher than the latter, then the debt/GDP ratio can trend lower
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