It is very well known that growth rates play a role in debt dynamics. Despite this widespread knowledge real world narratives of public debt crises often focus almost exclusively on budget deficits and neglect the role of growth. This paper presents the simplest arithmetic possible to illustrate how ...

The central problem in understanding economic development and growth is not, in fact, to understand the process by which an economy raises its savings rate and increases the rate of physical capital accumulation. Many development practitioners and researchers continue to target capital accumulation ...