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 …
@ritwik_priya hmm... okay. But shouldn't you should subtract face value in maturation year, not primary deficit in issue year for $-bonds?
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@vgr ...never re-paid. It can decline as % of GDP, but usually it's just rolled over rather than paid down. Plus, sovereigns issue across... -
@ritwik_priya so procedurally, holders of old bonds simply get issued new bonds with face value, new date, that they can then sell? - 2 more replies
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@vgr ...the entire tenor in near-continuous time, so ongoing interest payments/rate would be the most accurate way to represent, I'd think. -
@ritwik_priya Ah got it.
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@vgr Sorry, didn't quite get that. Though if I understand you correctly, the reason you won't do that is because sovereign debt is almost...Thanks. Twitter will use this to make your timeline better. UndoUndo
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