Common Sense Capitalism
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- Mar 14, 2010
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There's a number of ways to measure the risk of sovereign debt, but what is the best way?
Is it just the total amount of the debt?
Is it the country's debt to GDP ratio?
Are there any other helpful metrics that should be used?
Personally, I believe the best measurement is a cross between debt to GDP and the market's demand for that particular country's debt.
Is it just the total amount of the debt?
Is it the country's debt to GDP ratio?
Are there any other helpful metrics that should be used?
Personally, I believe the best measurement is a cross between debt to GDP and the market's demand for that particular country's debt.