"Interest rates can change like the weather. Debt levels . can't be brought down quickly," write...

|By:, SA News Editor

"Interest rates can change like the weather. Debt levels ... can't be brought down quickly," write Reinhart and Rogofff, dismissing arguments that low servicing costs mean debt isn't an issue (as Italy is finding out). Despite "prominent intellectuals" arguing otherwise, the empirical evidence shows strong correlation between large government debt and low growth.