@vgr i think because deficit already has interest payments. Total deficit = primary deficit + sovereign interest payments.
This suggests you can adjust GDP for debt by subtracting deficit (w or w/o inflation). Seems odd? Why not interest? http://seekingalpha.com/article/1473321-the-truth-about-qe-the-deficit-and-gdp-growth …
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@ritwik_priya hmm... okay. But shouldn't you should subtract face value in maturation year, not primary deficit in issue year for $-bonds? - Show replies
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@vgr Though why would you want to exclude this interest. As legitimate a form of capital income as any, no?Thanks. Twitter will use this to make your timeline better. UndoUndo
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@ShrikanthSS seems like one annualized flow from another more like.
End of conversation
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