With r-g near zero, any advanced economy running a primary deficit will see its debt-to-GDP ratio rise once existing debt is refinanced at current rates.
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6 Nov 2023
Olivier Blanchard quoted
Thus, once current debt has been refinanced and the average interest on debt reflects the higher long rates, absent changes in policy, debt ratios will increase.
↗If markets are right about long real rates, public debt ratios will increase for some timepiie.com