Tuesday, 4 September 2012
THERE IS NO DEBT CEILING
The oft-quoted 55% debt limit does not exist in our lawbooks.
forced to repeat himself
again to remind readers that the debt to GDP limit is not bound by law, but is the government’s internal target.
Gazzetted in Malaysian lawbooks however is a 55% limit on the amount of MGS, GII and Treasury Bills that the government can issue. Currently it stands at 45% of the GDP.
This is not the first time that the economist has written about this, thus his crankiness comes at no surprise.
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