Debt Ratios Tell Different Stories

Not all government‑debt metrics are interchangeable: debt‑to‑GDP, interest‑to‑GDP, and debt‑to‑equity each capture distinct fiscal pressures and can move in opposite directions. Relying on a single ratio (debt/GDP) can produce premature or misleading claims about sustainability. — Adopting multiple, theoretically grounded debt indicators would change policy debates over austerity, taxation, and spending by focusing discussion on which fiscal stress — servicing costs, leverage against national wealth, or headline debt — actually matters.