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Institute for Economics

Sovereign Debt Ratios

Assessing the sustainability of national leverage.

US Total Public Debt
$34.5 Trillion
US Debt to GDP Ratio
122%

The Reinhart-Rogoff Threshold

Economists fiercely debate whether a specific threshold (often cited as 90%) exists where debt-to-GDP actively suppresses economic growth. The reality is that sovereign debt denominated in a country's own fiat currency functions differently than corporate debt, as the central bank acts as the buyer of last resort.