Cecchetti, Stephen; Mohanty, Madhusudan; Zampolli, Fabrizio - Bank for International Settlements (BIS) - 2011
At moderate levels, debt improves welfare and enhances growth. But high levels can be damaging. When does debt go from … is a drag on growth. For government debt, the threshold is around 85% of GDP. The immediate implication is that countries … becomes a drag on growth. And for household debt, we report a threshold around 85% of GDP, although the impact is very …