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Government Debt and Stock Returns

ClearMoney

Becker and Ivashina (2018) argue that government debt instruments could compete with those of corporations in the financial markets, crowding out lending that would otherwise go toward corporations. Japan, for example, has experienced over a decade of debt/GDP levels above 200% without a default.3 Trading Economics.

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Is $22 Trillion a Tipping Point?

ClearMoney

Becker and Ivashina (2018) argue that government debt instruments could compete with those of corporations in the financial markets, crowding out lending that would otherwise go toward corporations. Japan, for example, has experienced over a decade of debt/GDP levels above 200% without a default.3 5Reuters (2011).