Debt-to-GDP is a misleading metric because GDP can be artificially inflated by government spending and increased debt (pushing up the denominator), while interest expense is a better measure of fiscal sustainability because it represents actual cash outlays.
normativepending
Speaker
Daniel LaeríaEvidence Quote
“Debt to GDP is a very bad ratio because GDP can be bloated with more government spending and more debt so the denominator gets pushed up...interest expense is so important”
Created: 8/12/2026, 6:00:34 PM
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