Sentences with phrase «nonproductive debt»

Not exact matches

If these constraints are not in place, however, analysts can no longer ignore this difference because the economy can then engage in nonproductive activity that for many years can force up the debt burden and add to GDP.

When China was underinvested, investments were nearly always productive, and so the ability to ignore budget constraints and hide the costs of nonproductive investment in the form of rising debt had little effect on the GDP data — or, to put it differently, rising debt did not reflect a rising debt burden.