IMF Paper Refutes Rogoff, Reinhart Debt Study – Real Time Economics Nyhetslänkar Add comments feb 142014 Now, the IMF has weighed in on the debate with a new paper entitled, “Debt and Growth: Is There a Magic Threshold?” “Our results do not identify any clear debt threshold above which medium-term growth prospects are dramatically compromised,” the paper says. The authors also say that it’s the direction in which debt levels are moving, not the absolute levels of debt, that appear key. “Among countries with the same debt levels, the growth performance over the next 15 years in countries where debt is decreasing is better than that in countries where it is increasing,” it says. However, the authors find that high levels of debt can lead to volatility in GDP due to market pressures and fiscal and monetary responses aimed at getting debt under control. But they conclude that high debt levels are not necessarily associated with subpar growth over the medium term. IMF Paper Refutes Rogoff, Reinhart Debt Study – Real Time Economics – WSJ. Leave a Reply Cancel replyYou must be logged in to post a comment.