In our study “Growth in a Time of Debt,” we found relatively little association between public liabilities and growth for debt levels of less than 90 percent of GDP. But burdens above 90 percent are associated with 1 percent lower median growth.
Carmen M. Reinhart is a senior fellow at the Peterson Institute for International Economics in Washington and Kenneth S. Rogoff is a professor of economics at Harvard University. See full post here. HT: Greg Mankiw