Fiscal
Debt Sustainability
Definition
Whether a government can service its debt over time without needing to restructure, default, or resort to inflationary money printing.
Explanation
Key variables: interest rate vs. growth rate, primary balance, currency denomination. Japan sustains 250%+ debt because of domestic savings and low rates. Greece couldn't sustain 175% because it lacked monetary sovereignty. The IMF/World Bank conduct Debt Sustainability Analyses for developing countries.