How much debt can the U.S. handle? A new paper quantifies an 80% public debt to GDP ratio -...

|By:, SA News Editor
How much debt can the U.S. handle? A new paper quantifies an 80% public debt to GDP ratio - where the U.S. is right now - as the point at which a nation reaches a potential tipping point; once a nation has debt above that level, it becomes vulnerable to the kind of self-reinforcing vicious cycles that have crippled others. Two responses from Fed officials see the analysis as simplistic and eurocentric.