The idea that there is a common tipping point in the relationship between public debt and economic growth is still widespread. However, this is likely due to a misinterpretation of the existing evidence. Once we allow for the relationship between debt and growth to be country-specific, there is limited evidence supporting the presence of a within-countries debt threshold.Vox.eu
Public debt and economic growth: There is no ‘tipping point’
Markus Eberhardt and Andrea F Presbitero
Another nail in the coffin of Reinhart & Rogoff.
