National debt

The sum of government debt, usually expressed as a proportion of GDP. The debate over whether this proportion has any real significance has sharpened in recent years, particularly in the light of quantitative easing, which has led to central banks owning large chunks of government bonds. Clearly, it matters what interest rate is payable, the maturity of the debt, the currency of denomination and who the creditors are. Governments struggle most if they have a lot of short-term debt to refinance in a foreign currency.