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This cycle of internal public debt accumulation (now hovering at close to 200% of GDP) is anchored to a vicious demographic curve that leaves the Japanese economy in the long-term position of a man treading water with a bowling ball in his hands.
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Italy is an interesting case study of a larger economy with a lack of growth in the last decade facing serious internal imbalances caused by high deficit and public debt.
The law focuses on external imbalances as impediments to growth and does not consider the case where internal imbalances emerging from budget deficits or public debt can also constrain growth.
The recent European public debt crisis of peripheral countries (including Italy) shows that when internal imbalances are out of control they can constrain growth and domestic demand in a severe way.
Most of this humongous public debt was held by Dutch private citizens, so in a sense it merely engendered an internal money circuit in the Dutch economy.
Take public debt.
In their wake, public debt explodes.
Public debt rose to unsustainable levels.
The first is the public debt.
A brief treatment of public debt follows.
The public debt is more manageable.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com