The debt to gdp critical level according Rigoff and Reinhart is 90%.
But what if countries just agree to it to being 500% debt to GDP?
What happens exactly if countries are "ok" and "cool" with it and just breach levels to that ceiling? What's stopping them if they all agree to it tacitly?
Can countries just tacitly agree than 500% debt to GDP is ok?
byu/PopularRightNow inAskEconomics
Posted by PopularRightNow