The problem with evaluating debt is not the total level but the pace of acceleration—when debt extends too quickly over a short time horizon (5 years), you end up making bad loans and create instability.

causalpending

Speaker

Ruchir Sharma

Evidence Quote

typically it's not the level of debt which matters but it's the pace of acceleration because if you uh extend too much debt over a short uh span of time uh often end up making bad loans

Source

The real impact of growing budget deficits - Ruchir SharmaNorges Bank Investment Management
Created: 8/11/2026, 8:01:53 AM

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