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sovereign debt servicing costs

Posts: 1
Topic starter
Joined: 3 weeks ago

Where can I find sovereign debt servicing costs of USA EU etc  as a ratio to GDP ?  I have heard that Japan has a debt  servicing cost of 4% of GDP  which means that the total sovereign debt is irrelevant , only the ability to service the debt is important.  If this is correct then the debt capital is paid off in time by issuing more bonds at negative real interest rates .  Is this one reason for QE ?  

1 Reply
Joseph Wang
Posts: 18
Joined: 1 year ago

I don't think public debt servicing costs matter at all to a sovereign. They can just print more money to pay it off. There could be inflationary side effects to this, of course.