FEBlog dean Elmer Sterken: 'Does government debt hurt economic growth?'

"With Greece in mind, everybody is afraid of government debt. Are high levels of government debt to GDP so detrimental to per capita growth? We find that OECD-countries with debt ratios over 90 percent still have reasonable, but indeed lower, growth rates. The the picture seems not that dramatic though."

Read the entire blog entry at www.rug.nl/feb/feblog