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by Cwizard
1395 days ago
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It’s a better metric because GDP gives some insight in the potential income of a country. Although it must be coupled with current tax % to be really useful. Debt usually has monthly or yearly payments, GDP refers to yearly income. In that sense I see a relation. An endowment is just a pile of money, I don’t see a time element there. |
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Sovereign debt, the kind that is typically compared to GDP only pays out interest periodically, not the principal.