Threshold as some
measure of GDP may not be, but the measures, itself, we choose to take after
running deficits and debts to cover the deficit could be. I mean the moment we
start realizing that debt has become a burden on GDP and can not be satiated
with the GDP, in the next period(s), through taxes, without affecting the level
of demand or other measures like paying out of our foreign-exchange reserves or
simply resorting to print currency and pay-off debts without losing our
purchasing power and adding to inflation. But, the best measure to decide the
threshold is that we cannot pay the debt out of our GDP in the next period(s)
without affecting demand. And, there could be second, third, or fourth
thresholds as we can decide as per our priorities.
Tuesday, August 3, 2010
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