tag:blogger.com,1999:blog-3120478448417742445.post392512701680077195..comments2024-03-24T06:35:14.281+00:00Comments on The Portuguese Economy: Growth and Debt and MiraclesEditorhttp://www.blogger.com/profile/16779405217168307855noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3120478448417742445.post-21123930029800561402010-04-21T07:52:02.499+01:002010-04-21T07:52:02.499+01:00The relevance of government indebtedness cannot be...The relevance of government indebtedness cannot be minimised, notably for economic growth and a country’s sovereign risk, as well as for capital markets and consumers’ expectations. Indeed, some non-linearity is at play in there, and indicative thresholds can be estimated. However, I always find it problematic to draw conclusions on purely illustrative examples (“Growth in a Time of Debt", Reinhart and Rogoff), without background modelling or econometric analysis. Therefore, when extracting policy conclusions from such studies, one has to be cautious and aware of their strengths and weaknesses in order to better inform the public and politicians. Naturally, without credible and sound fiscal behaviour, the non-linearity flag can be waved to a country much sooner.TSThttps://www.blogger.com/profile/06580738425763025197noreply@blogger.com