⚠️Automatic translation pending review by an economist.
Cyclical and structural deficits, real debt burden, and the snowball effect: all these concepts are essential to understanding the dynamics of public debt. They help us understand why, for example in the event of a recession, the deterioration in the cyclical budget balance and the snowball effect automatically increase the public debt-to-GDP ratio, without necessarily widening the structural deficit. Finally, understanding the determinants of public debt accumulation also helps us answer the question: how can public debt be reduced?
Infographic produced in collaboration with Pierre Aldama.
