00:01
Okay, so we give it here a statement as it regards the ratio of debt to gdp.
00:15
Of the debt to gdp.
00:23
And the question is whether this is actually a measure, is it a measure of the burden the debt places on the economy? so that is the question.
00:54
Is this true or false? is this true or false? okay, so the immediate answer definitely is yes, this is true.
01:09
Now, what is the reasoning behind us? we're basically just going to do an analysis of us to say, if you take the entire economy a form of a pie chart, for instance, and you have a measure of debt.
01:28
Two countries.
01:31
Country a and another country.
01:37
Country b, a shaded area representing the debt and the entire chart, the gdp.
01:47
What it simply shows is the ability of the country to pay off debt.
01:53
So if your gdp, if your debt to gdp, as in country a, it simply shows the country does not have issues in paying off is dead because the debt outweighs the, so this in particular, this can be like 10%, for instance, and you have this one coming up to, let's say, 40%...