Previous studies had argued that countries with public debt-to-GDP of 90% or higher would lead to a slowdown in GDP growth. A new study suggests that the level of GDP may not be the determining factor, but rather its "trajectory." The more interesting metric in my opinion is the level of total credit, or the amount of total private and public debt outstanding. As we have seen in class, private debt can easily bring down the economy.
http://www.economist.com/news/finance-and-economics/21597933-new-research-suggests-debts-trajectory-affects-growth-more-its-level-breaking
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