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Explaining the Interest-Rate‑Growth Differential Underlying Government Debt Dynamics

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Organisation for Economic Co-operation and Development2026-04-11 收录
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The differential between the interest rate paid to service government debt and the growth rate of the economy is a key concept in assessing fiscal sustainability. Among OECD economies, this differential was unusually low for much of the last decade compared with the 1980s and the first half of the 1990s. This paper investigates the reasons behind...
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