ECB paper looks at interest rate-growth differential

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A working paper published by the European Central Bank examines the importance of the interest rate-growth differential for eurozone economies. 

In Interest rate-growth differentials on government debt: an empirical investigation for the euro area, Cristina Checherita-Westphal and João Domingues Semeano say that it is an important influence on countries’ fiscal stances. States where the differential is negative could, in principle, lower their debt ratios, “even in the absence of primary

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