This suggests you can adjust GDP for debt by subtracting deficit (w or w/o inflation). Seems odd? Why not interest? seekingalpha.com/article/147332
Conversation
Replying to
i think because deficit already has interest payments. Total deficit = primary deficit + sovereign interest payments.
1
1
Replying to
hmm... okay. But shouldn't you should subtract face value in maturation year, not primary deficit in issue year for $-bonds?
Replying to
...never re-paid. It can decline as % of GDP, but usually it's just rolled over rather than paid down. Plus, sovereigns issue across...
1
1
Replying to
so procedurally, holders of old bonds simply get issued new bonds with face value, new date, that they can then sell?
4
Show replies
Replying to
...the entire tenor in near-continuous time, so ongoing interest payments/rate would be the most accurate way to represent, I'd think.
2
1
Replying to
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...
1

