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To: Cogito Ergo Sum who wrote (61625)3/3/2010 1:06:35 AM
From: elmatador  Respond to of 217791
 
The only way I can prevent further debt growth is by running a primary budget surplus (i.e. a surplus excluding interest payments).

There are nuances and qualifications to this arithmetic, and limitations too, but in essence the fault line between sustainable and unsustainable debt dynamics can be summarised as: maintaining a stable debt to GDP ratio requires governments to run a primary balance proportionate to the difference between interest rates and GDP growth.

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